Intermediate Accounting 4

Submit the exercise using the same basic information except change the problems with the new numbers provided. 

EX 8-13
	Unit Purchases	8000
	Unit Purchases	7000
Ex 8-14
	8-Aug	Purchase	11000
	14-Aug	Sale	6000
	18-Aug	Purchase	6500
Ex 8-18
	Do not complete
Pb 8-5
	Purchases	8000
		6000
Exercise 9-13 (Changed from exercise 9-19)
		Cost	Retail
	Beg Inv	9000	13500
	Purchases	40000	72000
	Net markups		2000
	Net markdowns		1500
	Net sales		50000
Exercise 9-8 (Changed from exercise 9-21)
	Beginning inventory (from records)				300000
	Plus: Net purchases (from records)				500000
	Net sales				600000
	Gross profit ratio				0.25
Ex 9-21
	Do not complete
Problem 9-6 (Changed from problem 9-1)
		Cost	Retail
	Beginning inventory	50,000	75,000
	Plus: Purchases	100000	135000
	Freight-in	6000
	Purchase returns	2600	3300
	Net markups		2500
	Net markdowns		1000
	Normal spoilage		6000
	Net sales		160000

Exercise 8-13

NOTE: Inventory ending balance may change based upon changed purchases.

Cost of goods available for sale:

Beginning inventory

Purchases:

$

Cost of goods available $

First-in, first-out (FIFO)

Cost of goods available for sale Less: Ending inventory (determined below) Cost of goods sold

Cost of ending inventory: Date of purchase Units Unit cost Total cost

August 18

Last-in, first-out (LIFO)

Cost of goods available for sale Less: Ending inventory (determined below) Cost of goods sold Cost of ending inventory:

Date of purchase Units Unit cost Total cost

Beg. Inv.

August 8

Total $

Exercise 8-13 (concluded)

Average cost

Cost of goods available for sale $ Less: Ending inventory (determined below) Cost of goods sold * Cost of ending inventory: $

Weighted-average unit cost = =

units

Exercise 8-14

NOTE: Inventory ending balance may change based upon changed purchases.

See example of perpetual inventory below:

FIFO

DatePurchasedCostSoldBalance UnitsCostTotal Cost

Beg Bal20006.10$ 20006.10$ 12,200.00$

8-Aug100005.50$ 20006.10$ 12,200.00$

100005.50$ 55,000.00$

1200067,200.00$

14-Aug800040005.50$ 22,000.00$

40005.50$ 22,000.00$

18-Aug60005.00$ 60005.00$ 30,000.00$

1000052,000.00$

25-Aug700030005.00$ 15,000.00$

First-in, first-out (FIFO)

Cost of goods sold: Date of Cost of sale Units sold Units Sold Total Cost

Aug. 14 Aug. 25 Total $

Ending inventory = units x $ =

Last-in, first-out (LIFO)

Date	Purchased	Sold	Balance
Beginning inventory
August 8
August 14
August 18
August 25			Ending inventory
	Total cost of goods sold	=

Exercise 8-14 (concluded)

(Note: the perpetual inventory LIFO results in this exercise are the same as periodic LIFO results, due to the timing of sales and purchases. The same LIFO layers are on hand at the end of the period under each method. This is unusual. LIFO perpetual and LIFO periodic normally produce different results for ending inventory and cost of goods sold.)

Average cost

Date	Purchased	Sold	Balance
Beginning inventory
August 8 Available
August 14
August 18 Available
August 25			Ending inventory
	Total cost of goods sold	= $

Problem 8-5

NOTE: Inventory ending balance may change based upon changed purchases.

Cost of goods available for sale for periodic system:

Beginning inventory $

Purchases:

Cost of goods available (17,000 units) $

1. FIFO, periodic system

Cost of goods available for sale $ Less: Ending inventory (determined below) Cost of goods sold $

Cost of ending inventory: Date of purchase Units Unit cost Total cost

Jan. 10

Jan. 18

Totals $

Problem 8-5 (continued)

2. LIFO, periodic system

Cost of goods available for sale $ Less: Ending inventory (determined below) Cost of goods sold $

Cost of ending inventory: Date of purchase Units Unit cost Total cost

Beg. Inv.

Jan. 10

Totals $

Problem 8-5 (continued)

3. LIFO, perpetual system

Date	Purchased	Sold	Balance
Beginning inventory
January 5
January 10
January 12
January 18
January 20			Ending inventory
	Total cost of goods sold	=

4. Average cost, periodic system

Cost of goods available for sale (17,000 units) $ Less: Ending inventory (below) Cost of goods sold

Cost of ending inventory: $

Weighted-average unit cost = = $

units

Problem 8-5 (concluded)

5. Average cost, perpetual system

Date	Purchased	Sold	Balance
Beginning inventory
January 5
January 10 Available
January 12
January 18 Available	6
January 20			Ending inventory
	Total cost of goods sold	= $

Exercise 9-8

Beginning inventory (from records)

Plus: Net purchases (from records)

Cost of goods available for sale

Less: Cost of goods sold:

Net sales Less: Estimated gross profit of 25%

Estimated cost of goods sold

Estimated cost of inventory destroyed $

Exercise 9-13

	Cost	Retail
Beginning inventory
Plus: Net purchases
Net markups
Less: Net markdowns
Goods available for sale
Cost-to-retail percentage: =
Less: Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost (66% x $50,000)
Estimated cost of goods sold

Problem 9-6

Requirement 1

	Cost	Retail
Beginning inventory
Plus: Purchases
Freight-in
Less: Purchase returns
Plus: Net markups
Cost-to-retail percentage: = %
Less: Net markdowns
Goods available for sale
Less:
Normal spoilage
Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost