Beruflich Dokumente
Kultur Dokumente
Date
5/1
5/15
5/24
Units
30
25
13
68
Proof
Unit Cost
$ 9
11
12
Total Cost
$270
275
156
$701
AVERAGE-COST
Cost of goods available for sale ..........................................................
Less: Ending inventory (22 X $10.72*)................................................
Cost of goods sold ................................................................................
$965
236
$729
FIFO
Beginning inventory (200 X $5) ...............................
Purchases
June 12 (300 X $6) .............................................
June 23 (500 X $7) .............................................
Cost of goods available for sale ..............................
Less: Ending inventory (160 X $7) .........................
Cost of goods sold ...................................................
$1,000
$1,800
3,500
Copyright 2013 John Wiley & Sons, Inc. Weygandt Financial, IFRS, 2/e, Solutions Manual (For Instructor Use Only)
5,300
6,300
1,120
$5,180
6-19
$6,300
1,008
$5,292
FIFO
Beginning inventory ..........................................
Purchases ...........................................................
Cost of goods available for sale .......................
Less: ending inventory (75 X $130*) ................
Cost of goods sold.............................................
$10,000
26,000
36,000
9,750
$26,250
*$26,000 200
(2)
AVERAGE-COST
Beginning inventory ..........................................
Purchases ...........................................................
Cost of goods available for sale .......................
Less: ending inventory (75 X $120*) ................
Cost of goods sold.............................................
$10,000
26,000
36,000
9,000
$27,000
6-20
Copyright 2013 John Wiley & Sons, Inc. Weygandt Financial, IFRS, 2/e, Solutions Manual (For Instructor Use Only)
*EXERCISE 6-14
(1)
Date
Purchases
Jan. 1
8
10 (6 @ $648) $3,888
15
FIFO
Cost of Goods Sold
(2 @ $600) $1,200
(1 @ $600)
(3 @ $648) $2,544
(2)
Balance
(3 @ $600) $1,800
(1 @ $600)
600
(1 @ $600)
4,488
(6 @ $648)
(3 @ $648)
1,944
MOVING-AVERAGE COST
Date
Purchases
Cost of Goods Sold
Jan. 1
8
(2 @ $600)
$1,200
10 (6 @ $648) $3,888
15
(4 @ $641.14) $2,565
Balance
(3 @ $600)
$1,800
(1 @ $600)
600
(7 @ $641.14)* 4,488
(3 @ $641.14) 1,923
6-24
$1,000
1,800
3,500
$6,300
Copyright 2013 John Wiley & Sons, Inc. Weygandt Financial, IFRS, 2/e, Solutions Manual (For Instructor Use Only)
Purchases
(300 @ $6) $1,800
June 15
June 23
FIFO
Cost of Goods Sold
(200 @ $5)
(200 @ $6)
$1,000
1,200
June 27
Balance
(200 @ $5)
$1,000
(200 @ $5)
$2,800
(300 @ $6)
(100 @ $6)
(340 @ $7)
600
2,380
$5,180
(100 @ $6)
(100 @ $6)
(500 @ $7)
(160 @ $7)
$ 600
$4,100
$1,120
(2)
Date
June 1
June 12
June 15
June 23
June 27
Purchases
Moving-Average Cost
Cost of Goods Sold
Balance
(200 @ $5)
(500 @ $5.60)
$2,240 (100 @ $5.60)
(600 @ $6.767)
$2,977 (160 @ $6.767)
$5,217
$1,000
$2,800
$ 560
$4,060
$1,083
FIFO gives the same ending inventory and cost of goods sold values
under both the periodic and perpetual inventory system. Moving
average gives different ending inventory and cost of goods sold
values under the periodic and perpetual inventory systems, due to the
average calculation being based on different pools of costs.
(c)
The simple average would be [($5 + $6 + $7) 3)] or $6. However, the
moving-average cost method uses a weighted-average unit cost that
changes each time a purchase is made rather than a simple average.
Copyright 2013 John Wiley & Sons, Inc. Weygandt Financial, IFRS, 2/e, Solutions Manual (For Instructor Use Only)
6-25
PROBLEM 6-5A
Units
60
120
70
80
330
330
285
45
Unit Cost
24
26
27
28
Total Cost
1,440
3,120
1,890
2,240
8,690
Sales Revenue
Unit
Date
Units Price Total Sales
October 11
100
35
3,500
22
65
40
2,600
29
120
40
4,800
285
10,900
(a)
(1) FIFO
(i) Ending Inventory
October 25 45 @ 28 = 1,260
6-36
10,900
7,430
3,470
8,690
1,260
7,430
Copyright 2013 John Wiley & Sons, Inc. Weygandt Financial, IFRS, 2/e, Solutions Manual (For Instructor Use Only)
(i)
Ending Inventory
45 @ 26.333 = 1,185*
*rounded to nearest dollar
10,900
7,505
3,395
= 26.333
8,690
1,185
7,505
(b) Average-cost produces the lower ending inventory value, gross profit,
and gross profit rate because its cost of goods sold is higher than
FIFO.
Copyright 2013 John Wiley & Sons, Inc. Weygandt Financial, IFRS, 2/e, Solutions Manual (For Instructor Use Only)
6-37