Homework: Chapter 6 Score: 0 of 5 pts E6-20 (book/static) 3 of 5 (1 complete) Hw
ID: 341327 • Letter: H
Question
Homework: Chapter 6 Score: 0 of 5 pts E6-20 (book/static) 3 of 5 (1 complete) Hw Score: 20%, 5 or 25 pts Question Help Assume that AB Tire Store complated the tolowina perpetual Inventory transacticns tor a Ine of tres: cark the icen o ww thc transactions ) Requirement 1. Compue cul ol guods sold and gioss pru usng e FIFO invenlory cuslg mellod Begin by computina the cost of goods sold and cost of andina merchandise nentery usina the F FO Inventory costng method. Enter the transacions In chronological crder, calculatina new Inventory on hand balances ater each transaction. Once all of the transactions have been entered into the perpebual record, calculate the quantty and total cost cf merchandise inventory purchased, sold, and on hand at the end of the penod Emer the odest inventory layers irst.) i Roquircments Cost of Goods Sold Inventory on Hand Unit Total Unit Total Unit Total Date QuantityCost Cost Quantiry Cos Cost Quanty Cost Cost 1. Compute cot of goods sod and gross proft using the FIFO Invcntory 2. Compute cost of goods sold and gross proft usia the LIFO inventory J. Cmpule c ol guods sild andgiass prot usng le wghle-average May 1 usling method. coating mcthod inventory costing method.(Round weighted-average cost per unit to the neares cent and ail other amcunts to the nearest dollar.) Pii Duie 1G Ilies@ 6seach 10 ties 78 cach 12 ts88 cach 14 tiresAS 80 each 18 tires S 88 each May 1 Uegming nerchardrse rivenlury 11 rurchasc Enter any number in the edt helds and then cick Check Answer 26 Purchase 29 Sale Clear Al Check AnswrsExplanation / Answer
Answer:
1
FIFO Method
FIFO Method
Purchase
Cost of goods sold
Ending inventory
Date
Quantity
Unit
Total cost
Quantity
Unit
Total cost
Quantity
Unit
Total cost
1-Oct
16
65
1040
16
65
1040
11
10
78
780
16
65
1040
10
78
780
23
12
65
780
4
65
260
10
78
780
26
14
80
1120
4
65
260
10
78
780
14
80
1120
29
4
65
260
10
78
780
4
80
320
10
80
800
Total
40
2940
30
2140
10
800
_________________________________________
2
LIFO Method
LIFO Method
Purchase
Cost of goods sold
Ending inventory
Date
Quantity
Unit
Total cost
Quantity
Unit
Total cost
Quantity
Unit
Total cost
1-Oct
16
65
1040
16
65
1040
11
10
78
780
16
65
1040
10
78
780
23
10
78
780
2
65
130
14
65
910
26
14
80
1120
14
65
910
14
80
1120
29
14
80
1120
4
65
260
10
65
650
Total
40
2940
30
2290
10
650
_______________________________________
3
Weighted average method
Weighted average Method
Purchase
Cost of goods sold
Ending inventory
Date
Quantity
Unit
Total cost
Quantity
Unit
Total cost
Quantity
Unit
Total cost
1-Oct
16
65
1040
16
65
1040
11
10
78
780
16
65
1040
10
78
780
26
70
1820
23
12
70
840
14
70
980
26
14
80
1120
14
70
980
14
80
1120
28
75
2100
29
18
75
1350
10
75
750
Total
40
2940
30
2190
10
750
FIFO
LIFO
Wighted
Average
Sales
(12+18)*88
2640
2640
2640
Less: Cist of goods sold
2140
2290
2190
Profit
500
350
450
_________________________
4
FIFO method gives largest gross profit because cost of goods sold is lower
FIFO Method
Purchase
Cost of goods sold
Ending inventory
Date
Quantity
Unit
Total cost
Quantity
Unit
Total cost
Quantity
Unit
Total cost
1-Oct
16
65
1040
16
65
1040
11
10
78
780
16
65
1040
10
78
780
23
12
65
780
4
65
260
10
78
780
26
14
80
1120
4
65
260
10
78
780
14
80
1120
29
4
65
260
10
78
780
4
80
320
10
80
800
Total
40
2940
30
2140
10
800
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