Problem 1

1. FIFO unit cost total cost

20-Jan 2,500 $ 300.00 $ 750,000.00
25-Jan 2,000 $ 400.00 $ 800,000.00
4,500 $ 1,550,000.00
2. WEIGHTED AVERAGE
1-Jan beg $ 6,000.00 $ 900,000.00
5-Jan $ 2,000.00 $ 400,000.00
20-Jan purch $ 2,500.00 $ 750,000.00
25-Jan purch $ 2,000.00 $ 800,000.00
$ 12,500.00 $ 2,850,000.00
weighted average cost $ 228.00
Inventory cost $ 1,026,000.00
Problem 2
1. FIFO
Lot 4 500 $ 100.00 $ 50,000.00
Lot 5 14,500 $ 90.00 $ 1,305,000.00
15000 $ 1,355,000.00

COGS $ 3,500,000.00
2.WEIGHTED
beg. 10,000 $ 80.00 $ 800,000.00
lot 1 2,000 $ 100.00 $ 200,000.00
lot 2 8,000 $ 110.00 $ 880,000.00
lot 3 6,000 $ 120.00 $ 720,000.00
lot 4 9,500 $ 100.00 $ 950,000.00
lot 5 14,500 $ 90.00 $ 1,305,000.00
50,000 $ 4,855,000.00

weighted average cost $ 97.10

Inventory cost $ 1,456,500.00
Cost of sales $ 3,398,500.00
3. SPECIFIC
lot 3 6,000 $ 120.00 $ 720,000.00
lot 4 9,000 $ 100.00 $ 900,000.00
15,000 $ 1,620,000.00
COGS $ 3,235,000.00
Problem 3
1. fifo
17-Dec 10,000 $ 45.00 $ 450,000.00
28-Dec 20,000 $ 43.00 $ 860,000.00
31-Dec 30,000 $ 1,310,000.00

$ 520,000.00
$ 1,500,000.00
$ 2,250,000.00
COGS $ 4,270,000.00

2. WEIGHTED
beg 10,000 $ 52.00 $ 520,000.00
30,000 $ 50.00 $ 1,500,000.00
60,000 $ 45.00 $ 2,700,000.00
20,000 $ 43.00 $ 860,000.00
120,000 $ 5,580,000.00

weighted average cost $ 46.50

Inventory cost $ 1,395,000.00
Cost of goods sold $ 4,185,000.00
Problem 4
1. fifo Purchases
1-Mar 1,000 $ 270.00 $ 270,000.00
6-Mar 3,000 $ 250.00 $ 750,000.00
14-Mar 6,000 $ 280.00 $ 1,680,000.00
25-Mar 4,000 $ 210.00 $ 840,000.00
$ 3,540,000.00
 Sales
9-Mar 1,000 $ 270.00 $ 270,000.00
1,000 $ 250.00 $ 250,000.00
31-Mar 3,000 $ 250.00 $ 750,000.00
5,000 $ 280.00 $ 1,400,000.00
Balance
1-Mar 1,000 $ 270,000.00
6-Mar 3000 $ 750,000.00
9-Mar 2,000 $ 250.00 $ 500,000.00
14-Mar 6,000 $ 280.00 $ 1,680,000.00
25-Mar 4,000 $ 210.00 $ 840,000.00
12,000 $ 3,020,000.00
31-Mar 4,000 $ 840,000.00

COGS $ 2,700,000.00

2. Moving average - perpetual

1-Mar 1,000 $ 270.00 $ 270,000.00
6-Mar 3,000 $ 250.00 $ 750,000.00
4,000 $ 255.00 $ 1,020,000.00
9-Mar -2,000 $ 255.00 $ -510,000.00
2,000 $ 255.00 $ 510,000.00
14-Mar 6,000 $ 280.00 $ 1,680,000.00
25-Mar 4,000 $ 210.00 $ 840,000.00
12,000 $ 252.50 $ 3,030,000.00
31-Mar -8,000 $ 252.50 $ -2,020,000.00
4,000 $ 252.50 $ 1,010,000.00

COGS $ 2,530,000.00
total cost
PROBLEM 5
Sales 1,200,000
Cost: -180000
-675000
income 345000

PROBLEM 6
Fifo units unit cost
1-Oct 15000 60

TGAS 2650000
inventory cost -900000
COGS 1750000

Weighted average
1-Jan 10000 40
1-Apr 15000 50
1-Oct 25000 60
50000

wieghted average cost

Ending inventory cost
COGS:

moving average
1-Jan 10000 40
Jan-31 -5000 40
balance 5000 40
1-Apr 15000 50
balance 20000 47.5
31-Jul -18000 47.5
balance 2000 47.5
1-Oct 25000 60
balance 27000 59.0740741
31-Dec -12000 59.07
balance 15000 59.07

COGS 1763840

PROBLEM 7
FIFO
1-Oct 300 10000

TGAS 9200000
Ending inventory cost -3000000
COGS 6200000

Weighted average (9200000/1000)

Ending inventory cost
COGS

PROBLEM 8
sales 6000000 100%
gross profit 2400000 0.4
cogs 3600000 60%
cost of goods (july5-12) -2246000
cost of goods - july 1 1354000

PROBLEM 9
Beg 14000
1-Mar 4800 135
total 18800
1-Sep 7200 140
26000 138
-15000 138
Inventory - 12/31 11000 138
,inventory- 2020 1480000
purchases 1656000
materials available 3136000
inventory -2021 -1518000
materials used 1618000

2022
beg inv 11000
1-Oct 7500 145
total 18500
10-May 5500 155
total 24000
29-Dec 7000 160
total 31000 153
-16000 153
Ending inventory cost 15000 153

,inventory- 2021 1518000

purchases 3060000
materials available 4578000
inventory -2022 -2295000
materials used 2283000

PROBLEM 10
Sales in units 28000
Schedule 1 - Weighted average Schedule 2 - FIFO
41.75 400000
1169000 336000
206000
215000
1157000
PROBLEM 11
FIFO
21-Jun 1500 330
30-Jun 2500 313
cost of ending 4000

AVERAGE METHOD
TGAS 8347500
divided by 26500
315
x ending inventory 4000
cost of ending inventory 1260000

problem 14 sales price cost

group 1 20/40 60000000 40200000
PROBLEM 15 25000000 16750000
3 20000000 13400000
105000000

70350000

PROBLEM 15

TOTAL COST 60000000

HI 20000000 12000000
LO 30000000 18000000
MI 50000000 30000000
100000000
PROBLEM 16
18-Jan 3450000
28-Jan 2400000
5850000
PROBLEM 17

8000
13200
21200
-16700
4500 330750

problem 18
units unit cost
1-Jan 10,000 100
7-Jan 6000 300
16,000 175
20-Jan 9000 175
7,000 175
25-Jan 4000 500
11,000 293.181818
total cost
900000

400000
750000
1500000
2650000

53
795000
1855000

400000
-200000
200000
750000
950000
-855000
95000
1500000
1595000
-708840
886160

3000000

9200
2760000
6440000

1480000
648000
2128000
1008000
3588000
-2070000
1518000
 1518000
1087500
2605500
852500
3458000
1120000
4743000
-2448000
2295000

chedule 2 - FIFO
 495000
782500
1277500

cost per lo unsold

2010000 5 10050000
1675000 4 6700000
1340000 3 4020000
20770000
total cost
1000000
1800000
2800000
-1575000
1225000
2000000
3225000
PROBLEM 1
Cost nrv lcnrv
A 120000 150000 120000
B 165000 180000 165000
C 180000 168000 168000
D 252000 288000 252000
E 221000 272000 221000
938000 1058000 926000

PROBLEM 2
1 700 650 650
2 475 745 475
3 255 250 250
4 450 740 450

PROBLEM 3 cost nrv lcnrv

Skis 2,200,000 2,500,000 2,200,000
Boots 1,700,000 1,500,000 1,500,000
Ski equipment 700,000 800,000 700,000
Ski apparel 400,000 500,000 400,000
5,000,000 5,300,000 4,800,000

A. DIRECT METHOD
Inventory 4,800,000
Income Summary 4,800,000
To record inventory at the lower cost or NRV.

B. ALLOWANCE
Inventory 5,000,000
Income Summary 5,000,000
To record inventory at cost.
Loss on inventory writedown 200,000
Allowance for inventory writedown 200,000
To account the loss on inventory writedown.

PROBLEM 4
Category 1: COST NRV LCNRV
A 2625000 2875000 2625000
B 1700000 1600000 1600000
subtotal 4325000 4475000
Category 2:
C 2000000 1600000 1600000
D 1950000 1800000 1800000
subtotal 3950000 3400000
grand total 8275000 7875000

a. Indivual 7625000
1 2
b. category 4325000 3400000 7725000

c. whole 8275000 7875000 7875000

PROBLEM 5
Inventory- beg 1,200,000
net purchases 9,000,000
GFAS 10,200,000
Inventory - ending -3,900,000
COGS 6,300,000

Ending inventory at cost 3,900,000

Ending inventory at nrv -3600000
required allowance 300,000
beg. Allowance -400,000
decrease in allowance -100,000
ENTRIES:
Inventory - dec 31 3900000
Income summary 3900000

loss on inventory writedown 100,000

Gain on reversal of inv writedown 100,000

PROBLEM 6
0.09
PROBLEM 1
beg inv. 500,000
purchases 2500000
Tgas 3,000,000
Sales 2400000
ending inv 600,000
physical count 575000
loss 25,000

PROBLEM 2
beg inv 2000000
purchases 5200000
tgas 7200000
net sales 5600000
end inv. 1600000

PROBLEM 3
inv jan 1 650000
net purchases 3125000
freight in 50000
tgas 3825000
net sales 2700000
ending inv cost 1125000

PROBLEM 4
beg inv 650000
net purchases 2220000
freight 60000
tgas 2930000
net sales 2359000
ending inv 571000
physical count 420000 missing 151000
PROBLEM 5
Sales 5600000
returns -400000
net sales 5200000
x rate 0.75
cogs 3900000

PROBLEM 6
beg inv 1100000
Purchases 6000000
tgas 7100000
net sales 5600000
ending 1500000
physical inv -100000
total loss 1400000

PROBLEM 7
beg inv 5000000 sales 40000000
net purchases 21000000 returns -3000000
freight in 2000000 netsales 37000000
tgas 28000000 x rate 0.6
cogs -22200000 cogs 22200000
ending inventory 5800000
physical count 4000000
consigned 600000
shortage 12000000

PROBLEM 8
Sales-2020 6000000
cogs (5.5M-1M) -4500000
gross profit 1500000 25%
beg inv 1000000
net purchases 7500000 *25+5 is 30%
tgas 8500000 so our cogs rate is 70%
cogs 6300000
ending inv 2200000
undamaged merch -350000
damaged -10000
fire loss 1840000

PROBLEM 9
beg inv 1500000
purchases 5500000
tgas 7000000
cash sales 5340000
sales on account: 700000
collection 8400000
9100000
ending -1100000
8000000
loss 1660000
PROBLEM 16

Inventory - May 31 Purchases - May 31 Purchases - June 30

950,000 6,750,000 8,000,000
-55,000 75,000 -15,000
895,000 -10,000 -20,000
-20,000 7,965,000
-55,000
6,740,000

Inventory - July 1 875000 May-31 875,000

purchases - may 6,740,000 june 7,965,000
TGAS 7615000 8,840,000
Ending inv may 31 895,000 Cogs: 7600000
Cost of sales 6,720,000 damage 100,000
Ending inv 1,140,000
Sales 8400000
cogs 6,720,000
gross profit 1,680,000

GP rate on sales 0.2

cost ratio 0.8

Sales 1200000
damage goods -100,000
sale with profit 1100000
x cost ratio 0.8
880000
damage goods 100,000
cogs - june 980000
PROBLEM 14-15
2021 cost retail
beg inv 556800 928000
purchases 4576000 7028000
net mark up 42000
net markdown -30000
net purchases 4576000 7040000
cost ratio
0.65
gafs 9152000 7968000
sales -6840000
ending inv at retail 1128000

FIFO at cost 733200

2022
beg inv 2312000 1128000
purchases 4760000 6812000
net mark up 56000
net markdown -68000
net purchases 4760000 6800000
cost ratio:
0.7
gafs 7072000 7928000
sales -6928000
ending inv at retail 1000000

FIFO at cost 700000