Problem 6-9AB (25 minutes)
Part 1
ALASKA COMPANY
Estimated Inventory
December 31
At Cost At Retail
Goods available for sale
Beginning inventory……………………………………. $ 469,010 $ 928,950
Cost of goods purchased……………………………. 3,376,050 6,381,050
Part 2
ALASKA COMPANY
Inventory Shortage
December 31
At Cost At Retail
Problem 6-10AB (25 minutes)
WAYWARD COMPANY
Estimated Inventory at March 31
Goods available for sale
Inventory, January 1………………………………………$ 302,580
Cost of goods purchased………………………………. 941,040
Goods available for sale………………………………… 1,243,620
Less estimated cost of goods sold
PROBLEM SET B
Problem 6-1B (40 minutes)
1. Compute cost of goods available for sale and units available for sale
Beginning inventory……………………… 20 units @ $3,000 $ 60,000
2. Units in ending inventory
Problem 6-1B (Continued)
3a. FIFO perpetual
Date Goods Purchased Cost of Goods Sold Inventory Balance
Apr. 1 20 @ $3,000.00 = $ 60,000.00
Apr. 6 30 @ $3,500.00
= $105,000.00
20 @ $3,000.00
30 @ $3,500.00 = $165,000.00
Problem 6-1B (Continued)
3b. LIFO perpetual
Date Goods Purchased Cost of Goods Sold Inventory Balance
Apr. 1 20 @ $3,000.00 = $ 60,000.00
Apr. 6 30 @ $3,500.00
= $105,000.00
20 @ $3,000.00
30 @ $3,500.00 = $165,000.00
Apr. 9 30 @ $3,500.00
5 @ $3,000.00
Problem 6-1B (Continued)
3c. Weighted Average perpetual
Date Goods Purchased Cost of Goods Sold Inventory Balance
Apr. 1 20 @ $3,000.00 = $ 60,000.00
Apr. 6 30 @ $3,500.00
= $105,000.00
20 @ $3,000.00
30 @ $3,500.00 = $165,000.00
(avg. = $3,300.00)
Problem 6-1B (Concluded)
3d. Specific Identification
Date Goods Purchased Cost of Goods Sold Inventory Balance
Apr. 1 20 @ $3,000.00 = $ 60,000.00
Apr. 6 30 @ $3,500.00
= $105,000.00
20 @ $3,000.00
30 @ $3,500.00 = $165,000.00
Apr. 9 8 @ $3,000.00
27 @ $3,500.00
12 @ $3,000.00
Specific identification—Alternative Computation
Cost of goods sold—20 [8+12] units from beginning inventory, 30 [27+3] units from
April 6 purchase, and 10 units from April 25 purchase
Ending Cost of
Specific Identification Inventory Goods Sold
4.
FIFO LIFO
Weighted
Average
Specific
Identification
Problem 6-2B (40 minutes)
1. Compute cost of goods available for sale and units available for sale
Beginning inventory……………………… 20 units @ $3,000 $ 60,000
2. Units in ending inventory
3.
Periodic Inventory
Ending
Inventory
Cost of
Goods Sold
a. FIFO
b. LIFO
d. Specific identification
Problem 6-2B (Concluded)
4.
FIFO LIFO
Weighted
Average
Specific
Identifi-cat
ion
Sales*……………………………….. $770,000 $770,000 $770,000.00 $770,000