Question

2/10/2020 Student: Summer Martinez Date: 02/10/20 Chapter 6 Homework ES-15, E8-20. E6-23. E5-25 Pe Summer Martinez Instructor: Maria Luna-Chavez Assignment: Chapter 6 Homework: E6- Course: ACCT-2301-023 15. E1-20. E6-23, E6-25, P6 2. Assume that AB Tire Store completed the following perpetual inventory transactions for a line of res (Click the icon to view the transactions.) Read the requirements? Ele- 20 Requirement 1. Compute cost of goods sold and gross profit using the FIFO Inventory costing method Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new Inventory on hand balances after each transaction Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Purchases Cost of Goods Sold Inventory on Hand Unit Total Unit Total Unit Total Date Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost Dec. 1 2013 51210 1297 51,044 *63 81,260 $87 1,044 $ $13 E1142 103 126 $97 34044 11059631536 3 $1210 12 $87 1044 09631534 $1.3 $12000 14 $9631.344 12 597 21,044 $96 3192 Totals 29) 3269034 1363014 - 31.344 Compute gross profit using the FIFO inventory costing method. Gross profit is $ 30 using the FIFO inventory costing method. Requirement 2. Compute cost of goods sold and gross profit using the LIFO inventory costing method Begin by computing the cost of goods sold and cost of ending merchandise inventory using the LIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first) I Sales tevi sale sale 2 may 29 revenue cost of may 23 126 ) *2.204 goods,

Answer 1

Rev.2 goods sold and gross profit wing the LIFO Inventory compute the cost of coshing Method Goods sold. Pluchases Cost of Qurandir Inventory on loo ocentily unit Hand Told Cost unit total & Quantity cenit cost Total cost cost cost 20 $63 $1,260 & 1260 $87 $1044 $63 20 Dec 12 $ 87 $1044 $1044 $882 ρες 3 $378 $63 पी Dec 26 $90 $1,260 $882 $1,260 $63 $90 TM I pec 29 $90 $63 $1,260 $126 $63 $756 $2304 Total $2808 1 12 $756 34 26

Rav-l's compute cost of goods sold and gross profit wing fifo Inventory using method. Purchases Quantity cenit cost of oceantity Goods cenit cost old a Total cost Inventory on Hand I Quantity cenit to Total cost Total cost Quantity cost T 20 63 $ 1,260 Decl 20 $63 $87 $1,044 $1,260 $1,0444 Deell 12 $87 $63 18 $1134 Dec 23 $63 $87 $126 $1,044 $126 $ 1044 $1,260 Dec 26 $90 in $63 Dec 26 $1,260 पीजी bec29 $63 $87 $90 $126 $ok $180 1 $2484 $90 $6,080 12 $ 1080 0 Total $2304 26 12

Rea largest y ! which Method results in the gross profit and why ? the (1) FIFO method results in the largest gross profit became during times of & Increasing inventory prices, this method will produce the (3) lowest Cost of goods sold (1 FIFO (2 Increasing (3) Lowest.

0 Total - sales value (18 litres X $96) + (16 litres x $96) $ 1728 + $ 1536 $3264 Cost of Goode sold a $ 2484 Gross Profit a Goode sold sales Value - cost of $3264 - $2484 $780

Is Total sales value (18 litres x 896) & (16 litres, 896) $ 1728 + $ 1536 $3264 Cost of Goods sold : $2592 Gross Profit & Goods sold Salls value - cost of $3264- $2592 $672

Rew 3 compute the cost of goodle cold and gross profit wing the weighted average Snventory costing method cost of Puchares Goode sold Inventory on Hand Sabt Quantity/ Anil cost total cost Quantity unic cost total cost Quantity unit rotal cost 20 $63 $ 1,260 Dec 1 $87 32 $1044 рес (t $72 $2304 ) (81260+ $104 (20+12) (20161260 22 $72 $1296 Dec 23 14 $72 $1008 28 $81 $2268 KletIH) (82268) $1008+ $ 90 $ 1,260 Dec 26 28 TS 1260) $972 $81 $129612 16 $81 DEC 29 $2592 | 12 $972 $230ly 34 Total 26

Total sales value (18 litrel x 896) + ( 16 litree x 896) $1928 + $1536 $3264 - Cost of Goods sold: $2808 Gross Profit = sales value - cost of Goode sold $3264 - $2808 $456

Rev.2 goods sold and gross profit wing the LIFO Inventory compute the cost of coshing Method Goods sold. Pluchases Cost of Qurandir Inventory on loo ocentily unit Hand Told Cost unit total & Quantity cenit cost Total cost cost cost 20 $63 $1,260 & 1260 $87 $1044 $63 20 Dec 12 $ 87 $1044 $1044 $882 ρες 3 $378 $63 पी Dec 26 $90 $1,260 $882 $1,260 $63 $90 TM I pec 29 $90 $63 $1,260 $126 $63 $756 $2304 Total $2808 1 12 $756 34 26

Rav-l's compute cost of goods sold and gross profit wing fifo Inventory using method. Purchases Quantity cenit cost of oceantity Goods cenit cost old a Total cost Inventory on Hand I Quantity cenit to Total cost Total cost Quantity cost T 20 63 $ 1,260 Decl 20 $63 $87 $1,044 $1,260 $1,0444 Deell 12 $87 $63 18 $1134 Dec 23 $63 $87 $126 $1,044 $126 $ 1044 $1,260 Dec 26 $90 in $63 Dec 26 $1,260 पीजी bec29 $63 $87 $90 $126 $ok $180 1 $2484 $90 $6,080 12 $ 1080 0 Total $2304 26 12