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PROBLEMS - CHAPTER 5 6 Some da Sovey HelpS Required information The following information applies to the questions displayed
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Answer #1
1 Specific Identification method:
Cost assigned to ending inventory:
$
Jan 30. purchase 340 units at $ 13 4420
Jan 20. purchase 5 units at $ 13.50 67.5
Beginning inventory 15 units at $ 14.50 217.5
Total 4705
Cost of goods sold=Beginning inventory+Purchases-Ending inventory=3190+9905-4705=$ 8390
2 Weighted average method:
Under weighted average inventory method,Inventory is valued at weighted average cost per unit
Weighted average cost per unit=Total cost/Total quantity
Goods purchased Cost of goods sold Inventory balance
Date # of units Cost per unit # of units sold Cost per unit Cost of goods sold # of units Cost per unit Inventory balance
Jan 1. 220 14.5 3190
Jan 10. 170 14.5 2465 50 14.5 725
(220-170)
Jan 20. 170 13.5 50 14.5 725
170 13.5 2295
Average cost 220 13.73 3020
(3020/220)
Jan 25. 200 13.73 2746 20 13.73 274.6
(220-200)
Jan 30. 340 13 20 13.73 274.6
340 13 4420
Average cost 360 13.04 4694.6
(4694.6/360)
Total 5211
Cost assigned to ending inventory=$ 4694.6
Cost of goods sold=$ 5211
3 Under FIFO method,Goods purchased first are sold first.
Goods purchased Cost of goods sold Inventory balance
Date # of units Cost per unit # of units sold Cost per unit Cost of goods sold # of units Cost per unit Inventory balance
Jan 1. 220 14.5 3190
Jan 10. 170 14.5 2465 50 14.5 725
(220-170)
Jan 20. 170 13.5 50 14.5 725
170 13.5 2295
Jan 25. 200 units sold as follows
50 14.5 725 20 13.5 270
150 13.5 2025 (170-150)
(200-50)
Jan 30. 340 13 20 13.5 270
340 13 4420
Total 5215
Cost assigned to ending inventory=270+4420=$ 4690
Cost of goods sold=$ 5215
4 Under LIFO method,Goods purchased last are sold first.
Goods purchased Cost of goods sold Inventory balance
Date # of units Cost per unit # of units sold Cost per unit Cost of goods sold # of units Cost per unit Inventory balance
Jan 1. 220 14.5 3190
Jan 10. 170 14.5 2465 50 14.5 725
(220-170)
Jan 20. 170 13.5 50 14.5 725
170 13.5 2295
Jan 25. 200 units sold as follows
170 13.5 2295 20 14.5 290
30 14.5 435 (50-30)
(200-170)
Jan 30. 340 13 20 14.5 290
340 13 4420
Total 5195 4710
Cost assigned to ending inventory=290+4420=$ 4710
Cost of goods sold=$ 5195
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