CHAPTER 6 Inventories
Ex. 6–22
$666,900 ($1,235,000 × 54%)
Ex. 6–23
$241,804 ($396,400 × 61%)
Ex. 6–25
Cost Retail
Merchandise inventory, June 1 $ 165,000 $ 275,000
Purchases in June (net) 2,361,500 3,800,000
Merchandise available for sale $2,526,500 $4,075,000
Ex. 6–26
a. Merchandise inventory, January 1 $ 350,000
Purchases (net), January 1–December 31 2,950,000
Merchandise available for sale $3,300,000
CHAPTER 6 Inventories
Ex. 6–27
Merchandise available for sale………………………………………………
…
$6,125,000
5,920,000
…
CHAPTER 6 Inventories
Prob. 6–1A
1.
Unit Total Unit Total Unit Total
Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost
Jan. 1 2,500 60.00 150,000
10 7,500 68.00 510,000 2,500 60.00 150,000
7,500 68.00 510,000
28 2,500 60.00 150,000
1,250 68.00 85,000 6,250 68.00 425,000
30 1,250 68.00 85,000 5,000 68.00 340,000
PROBLEMS
2016
Date
Purchases Cost of Merchandise Sold Inventory
CHAPTER 6 Inventories
Prob. 6–1A (Concluded)
2. Accounts Receivable 5,191,250
Sales 5,191,250
5. Because the prices rose from $60 for the January 1 inventory to $72 for the purchase
*
CHAPTER 6 Inventories
Prob. 6–2A
1.
Unit Total Unit Total Unit Total
Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost
Jan. 1 2,500 60.00 150,000
10 7,500 68.00 510,000 2,500 60.00 150,000
7,500 68.00 510,000
28 3,750 68.00 255,000 2,500 60.00 150,000
16 9,000 70.00 630,000 2,500 60.00 150,000
2,000 68.00 136,000
9,000 70.00 630,000
28 8,500 70.00 595,000 2,500 60.00 150,000
2,000 68.00 136,000
500 70.00 35,000
500 70.00 35,000
500 70.00 35,000
500 70.00 35,000
5,000 71.60 358,000
500 70.00 35,000
Cost of Merchandise Sold Inventory
2016
Date
Purchases
CHAPTER 6 Inventories
Prob. 6–2A (Concluded)
2. Total sales………………………………………………………………………
…
$5,191,250
Total cost of merchandise sold……………………………………………… 2,939,000
*
CHAPTER 6 Inventories
Prob. 6–3A
1.
Unit Total Total Total
Quantity Cost Cost Quantity Unit Cost Cost Quantity Unit Cost Cost
Jan. 1 2,500 60.00 150,000
10 7,500 68.00 510,000 10,000 66.00 660,000
28 3,750 66.00 247,500 6,250 66.00 412,500
30 1,250 66.00 82,500 5,000 66.00 330,000
2. Total sales……………………………………………………………
…
$5,191,250
3. $267,000 (3,750 × $71.20)
Cost of Merchandise Sold Inventory
Date
Purchases
*
CHAPTER 6 Inventories
Prob. 6–4A
1. First-In, First-Out Method
Merchandise inventory, March 31, 2016………………………………
…
$ 269,500
Cost of merchandise sold………………………………………………
…
2,904,500
Supporting computations
Merchandise inventory:
Cost of merchandise sold:
Beginning inventory, January 1, 2016…………………………………
…
$ 150,000
Purchases………………………………………………………………….. 3,024,000
…
…
2. Last-In, First-Out Method
Merchandise inventory, March 31, 2016………………………………
…
$ 235,000
Cost of merchandise sold………………………………………………
…
2,939,000
Supporting computations
…
…
…
CHAPTER 6 Inventories
Prob. 6–4A (Continued)
3. Weighted Average Cost Method
Merchandise inventory, March 31, 2016……………………
…
$ 261,600
Cost of merchandise sold……………………………………
…
2,912,400
Supporting computations
Weighted Average Unit Cos
t
Units Available for Sale
Total Cost of Merchandise Available for Sale
=
…
…
CHAPTER 6 Inventories
Prob. 6–4A (Concluded)
4. Weighted
FIFO LIFO Average
Sales $5,191,250 $5,191,250 $5,191,250
CHAPTER 6 Inventories
Prob. 6–5A
1. First-In, First-Out Method
Model Quantity Unit Cost Total Cost
A10 4 $ 76 $ 304
2 70 140
2. Last-In, First-Out Method
Model Quantity Unit Cost Total Cost
A10 4 $ 64 $ 256
2 70 140
CHAPTER 6 Inventories
Prob. 6–5A (Concluded)
3. Weighted Average Cost Method
Quantity Unit Cost*Total Cost
6 $ 70 $ 420
8 174 1,392
4. a. During periods of rising prices, the LIFO method will result in a lower cost
of inventory, a greater amount of cost of merchandise sold, and a lesser
Model
A10
B15
CHAPTER 6 Inventories
Prob. 6–6A
Market
Value per
Cost Unit (Net
per Realizable
Description Unit Value) Cost Market LCM
B12 38 30 $ 60 $ 57 $ 1,800 $ 1,710
13 129 126 1,677 1,638
4,237 4,158 4,158
L88 18 10 563 550 5,630 5,500
8 560 550 4,480 4,400
10,110 9,900 9,900
Quantity
Inventory Sheet
December 31, 2016
Inventory
Total
CHAPTER 6 Inventories
Prob. 6–7A
1.
Cost Retail
Merchandise inventory, August 1 $ 300,000 $ 575,000
2.
Cost
a. Merchandise inventory, March 1 $ 880,000
CELEBRITY TAN CO.
RANCHWORKS CO.
CHAPTER 6 Inventories
Prob. 6–1B
1.
Unit Total Unit Total Unit Total
Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost
Apr. 3 25 1,200 30,000
8 75 1,240 93,000 25 1,200 30,000
75 1,240 93,000
11 25 1,200 30,000
15 1,240 18,600 60 1,240 74,400
30 30 1,240 37,200 30 1,240 37,200
May 8 60 1,260 75,600 30 1,240 37,200
60 1,260 75,600
Cost of Merchandise Sold Inventory
2016
Date
Purchases
CHAPTER 6 Inventories
Prob. 6–1B (Concluded)
2. Accounts Receivable 525,250
Sales 525,250
4. $32,864 (26 units × $1,264)
5. Because the prices rose from $1,200 for the April 3 inventory to $1,264 for the purcha
s
*
CHAPTER 6 Inventories
Prob. 6–2B
1.
Unit Total Unit Total Unit Total
Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost
Apr. 3 25 1,200 30,000
8 75 1,240 93,000 25 1,200 30,000
10 1,260 12,600
19 10 1,260 12,600
5 1,240 6,200
5 1,200 6,000 20 1,200 24,000
28 80 1,260 100,800 20 1,200 24,000
Cost of Merchandise Sold Inventory
2016
Date
Purchases