Problem 6-6B (LO 6-2, 6-3, 6-4, 6-5, 6-6)
Requirement 1
November 2
Debit
Credit
Inventory
9,000
Accounts Payable
(Purchase inventory on account)
November 3
Inventory
231
Cash
231
(Pay freight-in)
November 9
Accounts Payable
1,300
Inventory
(Return inventory on account)
November 11
Accounts Payable
7,700
Inventory
231
($231 = $7,700 × 3%)
November 16
Accounts Receivable
14,000
(Sell inventory on account)
Cost of Goods Sold
9,640
Inventory
9,640
(Cost of inventory sold)
($9,640 = ($94 × 60 units) + ($100 × 40 units))
November 20
Cash
14,000
Accounts Receivable
(Receive cash on account)
6-82 Financial Accounting, 4e
Problem 6-6B (continued)
Requirement 1 (continued)
November 21
Debit
Credit
Inventory
7,280
Accounts Payable
7,280
November 24
Cash
Cost of Goods Sold
9,212
[$9,160 = ($100 × 37 units) + ($104 × 53 units)]
Chapter 6 – Inventory and Cost of Goods Sold
Problem 6-6B (concluded)
Requirement 2
November 30
Debit
Credit
Cost of Goods Sold
391
Requirement 3
Yoshi Inc.
Multiple-step Income Statement (partial)
For the month of November
Net sales
$26,600
Cost of goods sold*
Gross profit
Problem 6-7B (LO 6-2, 6-7)
Requirement 1
Toys “R” Us
Multiple-step Income Statement
For the month of March, 2018
Net sales:
Total sales revenue
$77,300
Less: Sales discounts
(3,000)
Net sales revenue
$74,300
Cost of goods sold
Gross profit
Income before income taxes
Net income
Problem 6-7B (concluded)
Requirement 2
Inventory
turnover
ratio
=
Cost of goods sold
=
$35,800
Average inventory
($2,800 + $1,000) /2
Requirement 3
Chapter 6 – Inventory and Cost of Goods Sold
Problem 6-8B (LO 6-7)
Requirement 1
Company 1
Company 2
Inventory
turnover
=
Cost of goods sold
=
$130,000
$165,000
Requirement 2
Company 1
Company 2
Gross
profit
=
Gross profit
=
$70,000
$35,000
Requirement 3
Problem 6-9B (LO 6-8)
Requirement 1
June 2
Debit
Credit
Purchases
2,700
Accounts Payable
2,700
(Purchase inventory on account)
June 4
Cash
(Pay freight-in)
June 8
Purchase Returns
(Return inventory on account)
June 10
Accounts Payable
2,300
Purchase Discounts
23
Cash
2,277
($23 = $2,300 × 1%)
June 11
Accounts Receivable
5,000
(Sell inventory on account)
June 18
Cash
Accounts Receivable
Problem 6-9B (concluded)
Requirement 1 (continued)
June 20
Debit
Credit
Purchases
3,800
Accounts Payable
3,800
June 23
Cash
Sales Revenue
June 26
Accounts Payable
500
Purchase Returns
500
Accounts Payable
Cash
Purchase Discounts
Requirement 2
July 31
Debit
Credit
Inventory (ending)
2,078
Cost of Goods Sold
6,800
Purchase Returns
900
Purchase Discounts
Purchases
400
Inventory (beginning)
Chapter 6 – Inventory and Cost of Goods Sold
Problem 6-9B (concluded)
Requirement 3
Circuit Country
Multiple-step Income Statement (partial)
For the month of July
Net sales
$10,300
Cost of goods sold:
Beginning inventory
3,000
Less: Ending inventory
Cost of goods sold
6,800
Gross profit
Add: Purchases
6,500
Problem 6-10B (LO 6-3, 6-9)
Requirement 1
Date
Transaction
Number
of units
Unit
cost
Ending
Inventory
Oct. 29
Purchase
$46
Date
Transaction
Number
of units
Unit
cost
Cost of
Goods Sold
Jan. 1
Beginning inventory
35
$40
$ 1,400
Apr. 14
Purchase
80
42
Oct. 29
Purchase
35
46
Requirement 2
Date
Transaction
Number
of units
Unit
cost
Ending
Inventory
Date
Transaction
Number
of units
Unit
cost
Cost of
Goods Sold
Jan. 1
Beginning inventory
35
$40
$ 1,400
Apr. 14
Purchase
80
42
Oct. 29
Purchase
45
46
Requirements 3 and 4
2018
2019
(a) ending inventory
Overstate
No Effect
(b) retained earnings
Overstate
No Effect
(c) cost of goods sold
Chapter 6 – Inventory and Cost of Goods Sold
ADDITIONAL PERSPECTIVES
AP6-1
Requirement 1 (a)
Sales Revenue
Date
Number of units
Sale price
Total sales
Jul.
31
40
$300
$12,000
Aug.
22
30
300
9,000
Nov.
20
90
Dec.
40
300
200
Cost of Goods Sold*
Date
Number of units
Unit cost
Total cost
Jul.
17
50
$150
$ 7,500
Aug.
12
40
160
6,400
Oct.
27
80
Dec.
4
$32,900
a First 200 units purchased are assumed sold. Only 30 of the 100 units purchased on
December 4 are sold, as this makes the total number of units sold equal 200. The
remaining 70 units are in ending inventory.
Ending Inventory
Date
Number of units
Unit cost
Total cost
Dec.
4