# Accounting Chapter 6 Homework Last 440 units purchased are assumed sold

Page Count
14 pages
Word Count
1481 words
Book Title
Financial Accounting Connect Access Code 4th Edition
Authors
David Spiceland, Don Herrmann, Wayne Thomas
Exercise 6-4 (continued)
Requirement 2 LIFO
(a)
Date
Transaction
Number
of units
Unit
cost
Ending
Inventory
Jan. 1
Beginning Inventory
50
\$42
\$2,100
(b)
Date
Transaction
Number
of units
Unit
cost
Cost of
Goods Sold
Apr. 7
Purchase
130
\$44
\$ 5,720
Jul. 16
Purchase
200
47
9,400
Exercise 6-4 (concluded)
Requirement 3 Weighted average
Transaction
Number
of units
Unit
cost
Total
cost
Beginning Inventory
50
\$42
\$ 2,100
Purchase
130
44
5,720
Purchase
200
47
9,400
Purchase
110
48
5,280
490
\$22,500
Weighted-average cost = \$22,500 / 490 units = \$45.91837
Requirement 4
FIFO
LIFO
Weighted-
average
Chapter 6 - Inventory and Cost of Goods Sold
Exercise 6-5 (LO 6-3)
Requirement 1 FIFO
(a)
Date
Transaction
Number
of units
Unit
cost
Ending
Inventory
(b)
Date
Transaction
Number
of units
Unit
cost
Cost of
Goods Sold
Jan. 1
Beginning inventory
20
\$22
\$ 440
Mar. 4
Purchase
25
21
525
Exercise 6-5 (continued)
Requirement 2 LIFO
(a)
Date
Transaction
Number
of units
Unit
cost
Ending
Inventory
Jan. 1
Beginning Inventory
20
\$22
\$440
(b)
Date
Transaction
Number
of units
Unit
cost
Cost of
Goods Sold
Mar. 4
Purchase
21
\$21
\$ 441
Exercise 6-5 (concluded)
Requirement 3 Weighted average
Date
Transaction
Number
of units
Unit
cost
Total
Cost
Jan. 1
Beginning Inventory
20
\$22
\$ 440
Mar. 4
Purchase
25
21
525
Requirement 4
FIFO
LIFO
Weighted-
average
Exercise 6-6 (LO 6-5)
Debit
Credit
Inventory
310,000
Accounts Payable
310,000
(Purchase inventory on account)
Chapter 6 - Inventory and Cost of Goods Sold
Exercise 6-7 (LO 6-5)
June 5
Debit
Credit
Inventory
4,000
Accounts Payable
4,000
(Purchase inventory on account)
June 9
Debit
Credit
Accounts Payable
800
Exercise 6-8 (LO 6-5)
Requirement 1
June 5
Debit
Credit
Inventory
3,800
Accounts Payable
3,800
(Purchase inventory on account)
Requirement 2
June 22
Debit
Credit
Exercise 6-9 (LO 6-5)
Requirement 1
May 2
Debit
Credit
Inventory
3,300
Accounts Payable
3,300
(Purchase inventory on account)
May 3
May 10
Accounts Payable
2,900
Inventory
29
Cash
2,871
(Pay on account with 1% discount)
(\$29 = \$2,900 × 1%)
May 30
Requirement 2
May 24
Debit
Credit
Accounts Payable
2,900
Cash
2,900
(Pay cash on account)
Exercise 6-10 (LO 6-5)
July 5
Debit
Credit
Inventory
100,000
Accounts Payable
100,000
(Purchase inventory on account)
July 8
July 28
Accounts Receivable
114,000
Sales Revenue
114,000
Chapter 6 - Inventory and Cost of Goods Sold
Exercise 6-11 (LO 6-5)
August 6
Debit
Credit
Inventory
14,000
Accounts Payable
14,000
(Purchase inventory on account)
August 7
August 10
Accounts Payable
1,200
Inventory
1,200
(Return inventory on account)
August 14
August 23
Accounts Receivable
11,000
Sales Revenue
11,000
Exercise 6-12 (LO 6-5)
August 6
Accounts Receivable
14,000
Sales Revenue
14,000
August 10
Sales Returns
1,200
Accounts Receivable
1,200
August 14
Exercise 6-13 (LO 6-6)
Requirement 1
Inventory
Quantity
Lower of Cost
and NRV
Ending
Inventory
Requirement 2
Debit
Credit
Cost of Goods Sold
5,000
Requirement 3
The write-down of inventory has the effect of reducing total assets (inventory),
Exercise 6-14 (LO 6-6)
Requirement 1
Inventory
Quantity
Lower of Cost
and NRV
Ending
Inventory
Shirts
35
\$ 60
\$ 2,100
Requirement 2
Debit
Credit
Cost of Goods Sold
1,650
Requirement 3
The write-down of inventory has the effect of reducing total assets (inventory),
Chapter 6 - Inventory and Cost of Goods Sold
Exercise 6-15 (LO 6-2, 6-7)
Requirement 1
Lewis
Clark
Beginning inventory
\$ 24,000
\$ 50,000
261,000
235,000
Less: Purchase returns
(15,000)
(60,000)
Requirement 2
Lewis
Clark
Inventory
turnover
=
Cost of goods sold
\$252,000
\$165,000
Requirement 3
Lewis
Clark
Average
365
365
365
Requirement 4
Lewis seems to be managing its inventory more efficiently. For Lewis, inventory turns
Exercise 6-16 (LO 6-2, 6-7)
Requirement 1
Gross
Profita
Operating
Incomeb
Income Before
Income Taxesc
Net
Incomed
Henry
\$27,200
\$22,200
\$20,200
\$18,200
Requirement 2
Henry
Grace
James
Gross
profit
=
Gross profit
\$27,200
\$10,500
\$15,200
Chapter 6 - Inventory and Cost of Goods Sold
Exercise 6-17 (LO 6-8)
Requirement 1
May 2
Debit
Credit
Purchases
3,300
Accounts Payable
3,300
(Purchase inventory on account)
May 3
May 10
Accounts Payable
2,900
Purchase Discounts
29
Cash
2,871
(Pay cash on account with 1% discount)
Requirement 2
May 31
Debit
Credit
Cost of Goods Sold
3,071
Purchase Returns
400
Purchase Discounts
29
Purchases
3,300
Exercise 6-18 (LO 6-8)
Requirement 1
July 5
Debit
Credit
Purchases
100,000
Accounts Payable
100,000
(Purchase inventory on account)
July 8
Accounts Payable
5,000
Requirement 2
July 31
Debit
Credit
Cost of Goods Sold
92,150
Purchase Returns
5,000
Exercise 6-19 (LO 6-9)
August 6
Debit
Credit
Purchases
14,000
Accounts Payable
14,000
(Purchase inventory on account)
August 7
August 14
Accounts Payable
12,800
Purchase Discounts
128
Cash
12,672
Requirement 2
August 31
Debit
Credit
Inventory (ending)
2,859.50
Cost of Goods Sold
10,212.50

## Trusted by Thousands ofStudents

Here are what students say about us.