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b. Inventory subsidiary ledger records:
(1) Specific identification method:
Date Units Unit Cost Total Units Unit Cost
Cost of
Goods Sold Units Unit Cost Balance
(2) Avera
g
e-cost method:
Date Units Cost Total Units Cost
Cost of
Goods Sold Units Cost Balance
* $46,200 total cost ÷ 1,500 units = $30.80 average unit cost.
(3) First-in, first-out (FIFO) method:
Date Units Unit Cost Total Units Unit Cost
Cost of
Goods Sold Units Unit Cost Balance
(4) Last-in, first-out (LIFO) method:
Date Units Unit Cost Total Units Unit Cost
Cost of
Goods Sold Units Unit Cost Balance
PURCHASED
PROBLEM 8.1
A
PURCHASED SOLD
SOLD BALANCE
BALANCE
SPORTS WORLD (continued)
PURCHASED SOLD BALANCE
PURCHASED SOLD BALANCE
PROBLEM 8.1
A
SPORTS WORLD (concluded)
30 Minutes, Strong
(1) Average-cost method:
(a) Cost of goods sold on July 28:
4
,
980
$
19
PROBLEM 8.2
A
a. Cost of goods sold and ending inventory
SPEED WORLD CYCLES: PERPETUAL SYSTEM
Avera
g
e cost
(
as of Jul
y
22
;
$24
,
900 ÷ 5 units
)
PROBLEM 8.2
A
SPEED WORLD CYCLES: PERPETUAL SYSTEM (concluded)
20 Minutes, Medium
(1) Average-cost method:
Ending inventory at September 30:
PROBLEM 8.3
A
a. Cost of goods sold and ending inventory
SPEED WORLD CYCLES: PERIODIC SYSTEM
20 Minutes, Medium
a. Shrinkage loss - 40 trees
(
1
)
Avera
g
e-cost method:
PROBLEM 8.4
A
MARY'S NURSER
Y
To record shrinka
g
e loss of 40 trees usin
g
the FIFO flow
25 Minutes, Easy
(1) FIFO:
Fourth purchase (Dec.18) 17 320
$
5
,
440
$
PROBLEM 8.5
A
Inventor
y
:
20 Minutes, Medium
a.
2015
2014
2013
Net sales 875,000$ 840,000$ 820,000$
Cost of goods sold 563,000 527,200 440,000$
Gross profit on sales 312,000$ 312,800$ 380,000$
2015:
last three years.
$481,250 + $81,750 = $563,000
PROBLEM 8.6
A
HEALTH FOODS
Cost of Goods Sold:
$487,200 + $40,000 = $527,200
$480,000 - $40,000 = $440,000 2013:
2014:
25 Minutes, Medium
a.
462
,
000
$
Cost ratio for the current
y
ear:
Cost of
g
oods available for sale
(
1
)
Estimated cost of
g
oods sold:
PROBLEM 8.7
A
BETWEEN THE EARS
20 Minutes, Strong
a. Computations based on LIFO valuation of inventory:
PROBLEM 8.8
A
WAL-MAR
T
