Intermediate Accounting I, ACCT-2154 Exam 3 Study Guide: Chapters 8 10 – Answer Key Problem 1 Problem 2 a. LIFO Perpetual Cost of Goods Sold Jan 12 500 X $60 $30,000 300 X $55 $16,500 $46,500 Jan 28 700 X $63 $44,100 50 X $55 $ 2,750 $46,850 Total Cost of Goods Sold $93,350 b. FIFO Periodic Total units sold: 1,550 Cost of Goods Sold 500 X $55 $27,500 500 X $60 $30,000 550 X $63 $34,650 Total Cost of Goods Sold $92,150 c. Weighted Average Perpetual Inventory On Hand Cost of Goods Sold Avg Perpetual Weighted # of Cost Cost of Average # of Inv. Units per Goods units Cost per Unit Value Sold Unit Sold Beg Inventory 500 $55 $27,500 Purchase – Jan 10 500 $60 30,000 $57.50 Subtotal Avg Cost 1,000 ($57,500/1,000) $57,500 Sale - Jan 12 800 $57.50 $46,000 Subtotal Avg Cost 200 $57.50 $11,500 Purchase – Jan 20 700 $63 $44,100 $61.78 Subtotal Avg Cost 900 ($55,600/900) $55,600 Sale - Jan 28 750 $61.78 $46,335 Total Cost of Goods Sold $92,335 Problem 3 Conventional Retail Method of Estimating Inventory
Intermediate Accounting I, ACCT-2154 Exam 3 Study Guide: Chapters 8 – 10 Answer Key Problem 1 Problem 2 a. LIFO Perpetual Cost of Goods Sold Jan 12 500 X $60 $30,000 300 X $55 $16,500 $46,500 Jan 28 700 X $63 $44,100 50 X $55 $ 2,750 $46,850 Total Cost of Goods Sold $93,350 b. FIFO Periodic Total units sold: 1,550 Cost of Goods Sold 500 X $55 $27,500 500 X $60 $30,000 550 X $63 $34,650 Total Cost of Goods Sold $92,150 c. Weighted Average Perpetual Inventory On Hand Cost of Goods Sold Perpetual Weighted Average # of units Cost per Unit Inv. Value # of Units Sold Avg Cost per Unit Cost of Goods Sold Beg Inventory 500 $55 $27,500 Purchase – Jan 10 500 $60 30,000 Subtotal Avg Cost 1,000 $57.50 ($57,500/1,000) $57,500 Sale - Jan 12 800 $57.50 $46,000 Subtotal Avg Cost 200 $57.50 $11,500 Purchase – Jan 20 700 $63 $44,100 Subtotal Avg Cost 900 $61.78 ($55,600/900) $55,600 Sale - Jan 28 750 $61.78 $46,335 Total Cost of Goods Sold $92,335 Problem 3 Conventional Retail Method of Estimating Inventory