Alternate Exercises and Problems 8–1
Chapter 8 Inventories: Measurement
EXERCISES
Exercise 8-1
PERPETUAL SYSTEM PERIODIC SYSTEM
($ in 000s)
Purchases
Inventory 265 Purchases 265
Accounts payable 265 Accounts payable 265
Freight
Sales
Accounts receivable 350 Accounts receivable 350
End of period
No entry Cost of goods sold (below) 264
Inventory (ending) 123
8–2 Intermediate Accounting, 8/e
Exercise 8-2
Inventory balance before additional transactions $317,000
Alternate Exercises and Problems 8–3
Exercise 8-3
Requirement 1
Purchase price = 50 units x $800 = $40,000 x .75 = $30,000
January 14, 2016
January 23, 2016
Requirement 2
January 14, 2016
Purchases ……………………………………………………………… 30,000
8–4 Intermediate Accounting, 8/e
Exercise 8-3 (concluded)
Requirement 3
Requirement 1:
January 14, 2016
Purchases (98% x $30,000)…………………………………………. 29,400
Requirement 2:
January 14, 2016
Purchases (98% x $30,000)…………………………………………. 29,400
Alternate Exercises and Problems 8–5
Exercise 8-4
First-in, first-out (FIFO)
Cost of goods sold:
Date of Cost of
sale Units sold Units Sold Total Cost
March 14 3,000 (from BI) $8.00 $24,000
1,000 (from 3/8 purchase) 8.40 8,400
8–6 Intermediate Accounting, 8/e
Exercise 8-4 (continued)
Last-in, first-out (LIFO)
Date
Purchased
Sold
Balance
Beginning
inventory
3,000 @ $8.00 = $24,000
3,000 @ $8.00 $24,000
Alternate Exercises and Problems 8–7
Exercise 8-4 (concluded)
Average cost
Date
Purchased
Sold
Balance
Beginning
inventory
3,000 @ $8.00 = $24,000
3,000 @ $8.00 $24,000
March 14
4,000 @ $8.25 $33,000
10,000 units
8–8 Intermediate Accounting, 8/e
Exercise 8-5
Requirement 1
Cost of goods available for sale:
Beginning inventory (7,000 x $22.00) $154,000
Purchases:
Cost of ending inventory:
Alternate Exercises and Problems 8–9
Exercise 8-5 (concluded)
Requirement 2
Date
Purchased
Sold
Balance
Beginning
inventory
7,000 @ $22.00 = $154,000
7,000 @ $22.00 $154,000
April 11
5,000 @ $22.30 = $111,500
8,000 @ $22.20 $178,400
8–10 Intermediate Accounting, 8/e
Exercise 8-6
Ending
Ending Inventory Inventory Layers Inventory Layers Inventory
Date at Base Year Cost at Base Year Cost Converted to Cost DVL Cost
1/1/16 $832,000
Alternate Exercises and Problems 8–11
PROBLEMS
Problem 8-1
Requirement 1
Beginning inventory (8,000 x $10.00) $ 80,000
Net purchases:
Cost of ending inventory:
Date of
purchase Units Unit cost Total cost
8–12 Intermediate Accounting, 8/e
Problem 8-2
Cost of goods available for sale for periodic system:
Beginning inventory (10,000 x $25.00) $250,000
Purchases:
1. FIFO, periodic system
Cost of goods available for sale (25,000 units) $631,000
Cost of ending inventory:
Date of
purchase Units Unit cost Total cost
Jan. 4 5,000 $24.00 $120,000
2. LIFO, periodic system
Cost of goods available for sale (25,000 units) $631,000
Cost of ending inventory:
Date of
purchase Units Unit cost Total cost
BI 10,000 $25.00 $250,000
Alternate Exercises and Problems 8–13
Problem 8-2 (concluded)
3. Average cost, periodic system
Cost of goods available for sale (25,000 units) $631,000
Cost of ending inventory:
$631,000
Weighted-average unit cost = = $25.24