You are on page 1of 10

# Anthony Company uses a perpetual inventory system.

It entered into the following purchases and sales transactions for March. Date Activities Beginning Mar. 1 inventory Mar. 5 Purchase Mar. 9 Sales Mar.18 Purchase Mar.25 Purchase Mar.29 Sales Totals 560 units 85 units 150 units @ \$61.00/unit @ \$63.00/unit 130 units 390 units @ \$96.00/unit Units Acquired at Cost 100 units 225 units @ \$51.00/unit @ \$56.00/unit 260 units @ \$86.00/unit Units Sold at Retail

Section Break

Problem 6-1A Alternative cost flowsperpetual L.O. P1

1.
award:

2 out of 2.00 points

Problem 6-1A Part 1
-2-2 http://ezto.mheclo

Required: 1. Compute cost of goods available for sale and the number of units available for sale. (Omit the "\$" sign in your response.)

Cost of goods available for sale Number of units available for sale

\$ 32,335 560

units

Worksheet

Difficulty: Hard Learning Objective: 06-P1 Compute inventory in a perpetual system using the methods of specific identification, FIFO, LIFO, and weighted average.

Problem 6-1A Part 1

Problem 6-1A Part 1 Required: 1.185 9.mheclo 2. (Omit the "\$" sign in your response.) Cost of goods available for sale Number of units available for sale \$ 560 ± 1% units Explanation: Beginning inventory March 5 March 18 March 25 Units available 100 units 225 units 85 units 150 units @ \$51. Compute cost of goods available for sale and the number of units available for sale.00 \$ 5. Compute the number of units in ending inventory.00 @ \$56. .00 points Problem 6-1A Part 2 -2-2 http://ezto.450 560 units Cost of goods available for sale \$ 32.00 @ \$61. award: 3 out of 3.00 @ \$63.600 5.100 12.335 2.

Round your weighted average cost to 3 decimal places. LIFO. and weighted average. FIFO. (b) LIFO. award: 3. Compute the cost assigned to ending inventory using (a) FIFO.75 out of 5. (Due to rounding. Ending inventory 170 ± 1% units Explanation: Units available (from part 1) Less: Units sold (260 + 130) Ending Inventory (units) 560 units 390 units 170 units 3. the March 9 sale consisted of 65 units from beginning inventory and 195 units from the March 5 purchase. Problem 6-1A Part 2 Problem 6-1A Part 2 -2-2 2. (c) weighted average.00 points Problem 6-1A Part 3 -2-2 http://ezto. Compute the number of units in ending inventory. and (d) specific identification. the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales. Round your final answers to nearest whole dollar amount. Omit the "\$" sign in your . the March 29 sale consisted of 45 units from the March 18 purchase and 85 units from the March 25 purchase. For specific identification.Ending inventory eBook Link 170 units Worksheet Difficulty: Hard Learning Objective: 06-P1 Compute inventory in a perpetual system using the methods of specific identification.mheclo 3.

760 ± 1% 10. 5 225 =\$12. the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales.299 ± 2. the March 9 sale consisted of 65 units from beginning inventory and 195 units from the March 5 purchase. (Due to rounding.450 \$ 10. Compute the cost assigned to ending inventory using (a) FIFO.) Ending Inventory (a) FIFO (b) LIFO (c) Weighted average (d) Specific identification rev: 12_18_2012 \$ \$ \$ \$ 10. For specific identification.600 \$56.670 \$ 9. and weighted average. 1 Goods Purchased Cost of Goods Sold @ 100 = \$51. and (d) specific identification.) Ending Inventory \$ 10. Round your weighted average cost to 3 decimal places. LIFO.100 @ Mar.response.00 Inventory Balance \$ 5.00 . Round your final answers to nearest whole dollar amount.670 ± 1% 9. (c) weighted average.00 @ 100 \$51. Problem 6-1A Part 3 Problem 6-1A Part 3 -2-2 3.000 ± 1% Explanation: (a) FIFO perpetual Date Mar.000 (a) (b) (c) (d) FIFO LIFO Weighted average Specific identification rev: 12_18_2012 eBook Link Worksheet Difficulty: Hard Learning Objective: 06-P1 Compute inventory in a perpetual system using the methods of specific identification.760 \$ 9. (b) LIFO. Omit the "\$" sign in your response.02 10. the March 29 sale consisted of 45 units from the March 18 purchase and 85 units from the March 25 purchase. FIFO.

700 3.00 \$ \$ 17. 9 @ 225 = \$56.00 @ 225 = \$51.00 @ 5. 5 225 =\$12.00 @ 65 \$51.00 @ 65 \$51.315 Mar.00 @ 150 = \$63.00 \$ 8.00 @ 100 \$51.00 @ 150 = \$63.00 @ 35 = \$51.500 @ Mar.185 \$61.00 @ 12.100 65 = \$56.640 20 \$61.00 @ 160 = \$56.00 \$ \$ 17.29 @ 65 = \$56. 1 Goods Purchased Cost of Goods Sold @ 100 = \$51.00 @ 8.00 \$ \$ \$ 10.00 @ 85 \$61.600 65 = \$51.25 150 =\$ 9.275 Mar.640 @ Mar.00 @ 85 = \$61.100 @ Mar.665 (b) LIFO perpetual Date Mar.760 .00 \$ 18.00 \$ \$ @ Mar.185 @ Mar.00 Inventory Balance \$ 5.600 \$56.00 @ 85 = \$61.785 @ 65 \$51.00 @ 85 \$61.00 @ 65 \$56.670 \$ 21.00 \$ \$ @ 225 = \$56.00 \$ 17.Mar.00 8.450 \$63.29 @ 130 = \$63.00 \$ \$ 9. 9 @ 100 = \$51.965 150 = \$63.25 150 =\$ 9.00 @ 3.700 3.190 85 \$61.18 85 =\$ 5.450 \$63.00 \$ 5.185 \$61.00 @ 20 = \$63.960 @ 65 \$56.950 Mar.00 @ 65 = \$61.18 85 =\$ 5.00 @ 3.00 1.

462) @ 14.18 85 =\$ 5.185 \$61. 1 Goods Purchased Cost of Goods Sold @ 100 = \$51.00 @ 35 \$51.185 \$61.600 \$56.00 \$ 18.00 @ 225 = \$56.600 \$56.700 Mar. = \$58.583) @ 7.462 (avg.18 85 =\$ 5. 5 225 =\$12.000 (avg.540 @ Mar.00 \$ 17.462 \$ \$ 3.100 @ Mar.00 @ 3. 9 @ 260 = \$54. = \$54.25 150 =\$ 9.100 @ Mar.00 @ 10.00 \$ 8.575 (c) Weighted Average perpetual Date Mar.00 @ 195 = \$56.29 @ 130 = \$60. 1 Goods Purchased Cost of Goods Sold @ 100 = \$51.462) @ 65 \$54.876 170 = \$60.000 @ 225 = \$56.036 (d) Specific Identification Date Mar.315 35 \$51.465 @ Mar.00 Inventory Balance \$ 5.00 @ 100 \$51.160 65 = \$54.167 @ 150 = \$63. = \$60. = \$54. 9 @ 65 = \$51.725 @ Mar.920 30 = \$56.00 .00 \$ \$ \$ 3.462 @ 85 = \$61.\$ 22.000 (avg.299 \$ 22.583 Inventory Balance \$ 5.00 \$ 17.583 \$ \$ 10.000 @ 100 \$51.000 (avg.700 Mar. 5 225 =\$12.450 \$63.175 Mar.167) @ 150 \$58.

00 @ 22.00 @ 150 = \$63.000 4.00 @ 35 \$51.00 @ 40 \$61.905 \$ 22.25 150 =\$ 9.335 FIFO LIFO Weighted average Specific identification eBook Link Worksheet Problem 6-1A Part 4 Difficulty: Hard Learning Objective: 06-P1 Compute inventory in a perpetual system .100 \$ 10.00 @ 2.00 @ 85 = \$63. Compute gross profit earned by the company for each of the four costing methods.00 points Problem 6-1A Part 4 -2-2 http://ezto.355 30 \$56.00 @ 85 = \$61. award: 0 out of 3.450 \$63. Omit the "\$" sign in your response.745 35 \$51.575 \$ 22.@ Mar.mheclo 4.650 \$ 18.00 Mar.665 \$ 22.00 \$ 8.00 @ 30 \$56.335 65 = \$63.29 @ 45 = \$61. (Round your per unit costs to 3 decimal places and inventory balances and final answer to the nearest dollar amount.00 @ 5.) Gross profit \$ 21.00 \$ \$ \$ @ 30 \$56.00 @ 85 \$61.

665 22. Problem 6-1A Part 4 -2-2 4.02 12.00) + (130 units × \$96.036 22. LIFO.505 *Sales = (260 units × \$86.840 21.265 ± 1% 12.265 \$ 12.175 \$ 12.175 ± 1% 12.505 ± 1% Explanation: FIFO Sa les* Le ss: Cos t of goo ds sold Gr oss prof it \$ 34.840 \$ LIFO 34.335 \$ 13. Compute gross profit earned by the company for each of the four costing methods.804 ± 2.840 1 feedback no yes yes yes yes . FIFO.using the methods of specific identification. and weighted average. (Round your per unit costs to 3 decimal places and inventory balances and final answer to the nearest dollar amount.804 \$ 12.00) = \$34. Omit the "\$" sign in your response.) Gross profit FIFO LIFO Weighted average Specific identification \$ \$ \$ \$ 13.575 22.840 \$ Weighted Average 34.840 Specific Identification \$ 34.

Of course that changes depending on whether you use LIFO. CGS plus Ending Inventory equals the total you calculated in part (1). etc.  Note : this assignment will be automatically submitted to your instructor on the due date even if your work . If your instructor makes any policy edits while you are in the middle of an assignment attempt. or a 4-column table like the author -. the new policies will only apply to subsequent assignment attempts.your choice. Then multiply by the number of total units to get total cost. Kolody: Remember that the total the store paid to stock (purchase) all the total goods available for sale will end up being dollars of inventory EITHER sold (CGS) or not sold (Ending Inventory). or FIFO. Use either a 3-column table like Kolody notes. In this problem we are accounting for all costs. So. You will need paper and pencil to compute the calculations offline.yes Sp13 Jan-May Online Graded Homework Chapter 6 close window from Professor Jill Kolody: Note from Dr. you will multiply the rounding error!)  due date: 04/07/2013 at 11:55 PM  attempts: 1 of 2 attempts  Policies in place at the START of this assignment attempt will be in effect as you take it. Use your calculator's memory to store the per unit cost using all the decimals. (If you make the error of multiplying a rounded number. Remember that you do not 'round' until the final answer. to show where they end up.

student assignment preview close window The student preview allows you to see your assignment screens as your students will see them.is incomplete. Changes and selections you make while in student view (including clicking "submit assignment") will not be saved or otherwise affect any of your (or your students') settings. so feel free to explore! hint close window ©2012 The McGraw .