Chapter 6 Homework Answer

Navigation   » List of Schools, Subjects, and Courses  »  Accounting 001 – Introduction ot Accounting 1  »  Homeworks  »  Chapter 6 Homework  »  Chapter 6 Homework Sample Answers

We are showing you only the excerpt of our answer. If you need help with the complete answer email us at

Chapter 6 Homework

 

1.  Cost Flow Methods

The following three identical units of Item K113 are purchased during April:

 

Item Beta

 

Units

 

Cost

 

April 2

Purchase

 

1

 

$97

 

April 15

Purchase

 

1

 

101

 

April 20

Purchase

 

1

 

105

 

Total

 

 

3

 

$303

 

Average cost per unit

 

 

 

 

$101

($303 ÷ 3 units)

Assume that one unit is sold on April 27 for $127. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost method.

 

  Gross Profit Ending Inventory
a. First-in, First out (FIFO)    
b. Last-in, first out (LIFO)    
c. Weighted average cost    

 

2.  Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales for Item Zeta9 are as follows:

Oct. 1

 

Inventory

36 units @ $22

7

 

Sale

26 units

15

 

Purchase

35 units @ $24

24

 

Sale

18 units

Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a)the cost of goods sold on October 24 and (b) the inventory on October 31.

a. Cost of goods sold on October 24   $________

b. Inventory on October 31    $ _________

 

3.   Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales for Item 88-HX are as follows:

Mar. 1

 

Inventory

86 units @ $26

8

 

Sale

69 units

15

 

Purchase

95 units @ $29

27

 

Sale

80 units

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of goods sold on Mar. 27 and (b) the inventory on Mar. 31.

 

a. Cost of goods sold on March 27   $ ______

b. Inventory on March 31                  $ ______

 

4.   Perpetual Inventory Using Weighted Average

Beginning inventory, purchases, and sales for WCS12 are as follows:

Oct. 1

 

Inventory

300 units at $8

13

 

Sale

175 units

22

 

Purchase

375 units at $10

29

 

Sale

280 units

a. Assuming a perpetual inventory system and using the weighted average cost method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places.   $ _____

b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your “average unit cost” to two decimal places.  $ _____

c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your “average unit cost” to two decimal places.  $ _______

 

 

5.   Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Method.

The units of an item available for sale during the year were as follows:

Jan. 1

Inventory

20

units at $360

$7,200

Aug. 13

Purchase

260

units at $342

88,920

Nov. 30

Purchase

40

units at $357

14,280

Available for sale

320

units

$110,400

There are 57 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method.

 

a.  First-in, first out (FIFO) method     $ ______

b. Last-in, first out (LIFO) method      $ _______

c. Weighted average cost method     $ _______

 

 

6.   Periodic Inventory by Three Methods

The units of an item available for sale during the year were as follows:

Jan. 1

Inventory

1,000

units at $15

Feb. 17

Purchase

1,375

units at $16

July 21

Purchase

1,500

units at $17

Nov. 23

Purchase

1,125

units at $18

There are 1,100 units of the item in the physical inventory at December 31. The periodic inventory system is used.

a. Determine the inventory cost by the first-in, first-outmethod.  $ _______

b. Determine the inventory cost by the last-in, first-outmethod.   $ _______

c. Determine the inventory cost by the weighted average costmethod.   $ ______

 

7.  Periodic inventory by three methods; cost of goods sold

The units of an item available for sale during the year were as follows:

Jan. 1

Inventory

180

units at $108

Mar. 10

Purchase

224

units at $110

Aug. 30

Purchase

200

units at $116

Dec. 12

Purchase

196

units at $120

There are 208 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the ending inventory cost and the cost of goods sold by three methods.

Cost of Inventory and Cost of Goods Sold
Inventory of Method Ending Inventory Cost of Goods Sold
First-in, First out (FIFO)    
Last-in, First-out (LIFO)    
Weighted Average Cost    

 

 

 

 

 

 

 

Need help with your discussion preparation?

This question is taken from Accounting 001 – Introduction ot Accounting 1 » Winter 2022 » Homeworks