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Weygandt Accounting Principles, 12e,
Chapter Six
Solutions to Challenge Exercises
Challenge Exercise 6-1 – Solution
FIFO
Beginning inventory (25 X $100) ........................................................................ $ 2,500
Purchases
Sept. 12 (45 X $106) ................................................................................ $4,770
Proof
Date
Units
Unit Cost
Total Cost
9/1
25
$ 100
$ 2,500
9/12
45
106
4,770
LIFO
Cost of goods available for sale........................................................................................... $15,510
Proof
Date
Units
Unit Cost
Total Cost
9/26
50
$112
$ 5,600
(b)
FIFO $2,576 (ending inventory) + $12,934 (COGS) =
Challenge Exercise 6-1 – Solution (Continued)
(c) FIFO: Sales $20,570 (121 X $170) less $12,934 = $7,636
Challenge Exercise 6-2 – Solution
(a) 2016 2017
Beginning inventory .................................................................... $ 30,000 $ 36,000
Cost of goods purchased............................................................ 170,000 195,000
