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35 Minutes, Medium
Jan 22 14
,
800
Inventor
y
14
,
800
SOLUTIONS TO PROBLEMS SET B
PROBLEM 8.1B
DOBBINS SUPPLY, INC.
Cost of Goods Sold
a.
2015
General Journal
(1) Specific identification method:
To record cost of 700 cartrid
g
es sold to Foster
(1) Specific identification method: DOBBINS SUPPLY INC. (cont.)
Cost of
(2)
A
vera
g
e-cos
t
me
th
o
d
:
Cost of
(3) First-in, first-out (FIFO) method:
Cost of
(4) Last-in, first-out (LIFO) method:
Cost of
PURCHASED
PURCHASED SOLD
SOLD BALANCE
BALANCE
PURCHASED SOLD BALANCE
PURCHASED SOLD BALANCE
PROBLEM 8.1B
DOBBINS SUPPLY, INC. (concluded)
30 Minutes, Strong
(1) Average-cost method:
(a) Cost of goods sold on April 28:
8
,
111
$
40
PROBLEM 8.2B
a. Cost of goods sold and ending inventory
SEA TRAVEL: PERPETUAL SYSTE
M
Avera
g
e cost
(
as of A
p
ril 28
;
$73
,
000 ÷ 9 units
)
Problem 8.2B
SEA TRAVEL: PERPETUAL SYSTE
M
(concluded)
20 Minutes, Medium
(1) Average-cost method:
Ending inventory at June 30:
(2) First-in, first-out (FIFO) method:
Ending inventory at June 30: 25,500$
PROBLEM 8.3B
a. Cost of goods sold and ending inventory
SEA TRAVEL: PERIODIC SYSTEM
3 units from
p
urchase on Ma
y
8
(@
$8
,
500
)
20 Minutes, Medium
a. Shrinkage loss-one lawn mower
107
Inventor
y
107
3
,
390
Inventor
y
3
,
390
Cost of Goods Sold
To write down inventor
y
to a market value below cost:
(2) Write-down of inventory to the lower-of-cost-or-market:
Cost of Goods Sold
To record shrinka
g
e loss of one lawn mower usin
g
avera
g
e
cost of $107
(
$21
,
400 ÷ 200 mowers = $107
p
er mower
)
.
(
2
)
Last-in first-out
(
LIFO
)
method:
(
1
)
Avera
g
e-cost method:
PROBLEM 8.4B
SAM'S LAWN MAINTENANC
E
25 Minutes, Easy
U
n
it
s
U
n
it
C
os
t
T
o
t
a
l
C
os
t
a. Inventory and cost of goods sold:
(1) FIFO:
Fourth
p
urchase 16 108
$
1
,
728
$
PROBLEM 8.5B
RYAN SOUND
Inventor
y
:
