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
9/19
24
2,640
9/26
$12,934
LIFO
Cost of goods available for sale………………………………………………………………………………. $15,510
Proof
Date
Units
Unit Cost
Total Cost
9/26
50
$112
$ 5,600
9/19
24
2,640
9/12
45
106
4,770
9/1
100
200
$13,210
(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