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Instructions for the Microsoft Excel Templates by Rex A Schildhouse

Be advised, the template workbooks and worksheets are not protected. Overtyping any data may remove it.
Extensive detail and information is contained within the help function of Microsoft Excel and in the provided text. You should enter your name, date, instructor's name, and course into the cells at the top of the page. This information will be printed on the top of each page if the template requires more than one page. Each template is set to print with File Name, Page # of # Page(s), the print date, and the print time to assist in assembly of multiple pages. If more than one page is required by the template, manual page breaks have been set to provide consistent presentation. All of the cells have been correctly formatted for presentation and should not require any adjustment. For example, if the text requires one, two, or three significant digits in a presentation, the template has been set for that presentation in the appropriate cells. In general, the yellow highlighted cells are the cells which work and effort should be presented. These entries may include date(s), account title(s), values, memorandum appropriate to the entry, or text answers to questions. And information or data which may be required by the solution will be entered in cells with borders to help identify them. Where a yellow highlighted cell shows "Date" enter the appropriate date for that step of the challenge. This may be any date format that Microsoft Excel accepts. Some of these formats include "1/1/12", "01/01/12", and "01/01/2012." All of these will return January 01, 2012, in the format set in the template. Where a yellow highlighted cell shows "Acct Nbr" enter the appropriate account number, provided in the template and in the text for that step of the challenge. This is entry may be a "Look to" formula to another cell where that information has been provided or previously entered. Where a yellow highlighted cell shows "Account Title" enter the appropriate account title for that step of the challenge. This is a text entry and most of those cells are set for the proper indentation for that step. Frequently the chart of accounts appropriate to the challenge is provided and you can use the "look to" formula to reference the appropriate account title without typing it. Check with your instructor to see if abbreviated account titles are acceptable. For example "A/R" for Accounts Receivable, "A/P" for Accounts Payable. If your instructor is using a comparison process between workbooks for grading, these abbreviates may not be acceptable. Where a yellow highlighted cell shows titles such as "Values," "Amounts," or "Quantities" enter the appropriate numerical value for that step of the challenge. The cell is formatted for proper presentation of the entered information. If a dollar sign is appropriate, it should not be entered, Microsoft Excel will place it there through formatting. Commas and significant digits (decimals) are also set through formatting for common presentation. Since the formatting of the templates is not protected by any password, you may change any of the formatting found in the templates to meet your desires. Where a yellow highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value appropriate for that step of the challenge. Most of the values necessary for the appropriate formula are located on the template in cells with borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal sign and a cell reference, "=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula. These are addressed in the tutorial text provided for Microsoft Excel.

Where a yellow highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value appropriate for that step of the challenge. Most of the values necessary for the appropriate formula are located on the template in cells with borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal sign and a cell reference, "=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula. These are addressed in the tutorial text provided for Microsoft Excel. Where a yellow highlighted cell shows "Text" enter the appropriate text for that step of the challenge. This may be a memorandum entry for a journal entry or a lengthy text answer discussing the results of an analysis of a company's financials. These titles can simply be typed over. Where a yellow highlighted cell shows titles such as "Journal Number" or "Journ #" you should enter the appropriate number provided in the template and in the text for that step of the challenge. In general this will appear in instances such as "Record the following events in General Journal number six." The print area is defined to fit onto 8 1/2" 11" sheets in portrait or landscape mode as required. Margins are generally set to no less than 1/2" so most printers can print them without a problem. If you printer cannot accept margins less than 1" you may have to reformat the margins through Page Setup. The display may have "Freeze Pane" invoked so column titles remain visible during data entry. This can be removed by utilizing the View menu and selecting "Unfreeze Panes" under "Freeze Panes." When negative values are required, enter them by starting with a minus sign, "-". Negative values may be shown as ($400) or -$400. Negative values in formulas can be created by putting a minus sign in front of the cell reference - "=E10*-E11" will return a negative value if both cells E10 and E11 contain positive values. Microsoft Office and Microsoft Excel are products of, and copyrighted by, Microsoft Corporation, One Microsoft Way, Redmond, Washington 98052-6399

Solution Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E8-2 (Inventoriable Costs) In your audit of Garza Company, you find that a physical inventory on December 31, 2012, showed merchandise with a cost of $441,000 was on hand at that date. You also discover the following items were all excluded from the $441,000 1. Merchandise of which is held by Garza on consignment. The consignor is $61,000 the Bontemps Company. 2. Merchandise costing which was shipped by Garza f.o.b. destination to a $33,000 customer on December 31, 2012. The customer was expected to receive the merchandise on January 6, 2013. 3. Merchandise costing which was shipped by Garza f.o.b. shipping point to a $46,000 customer on December 29, 2012. The customer was scheduled to receive the merchandise on January 2, 2013. 4. Merchandise costing shipped by a vendor f.o.b. destination on $73,000 December 30, 2012, and received by Garza on January 4, 2013. 5. Merchandise costing shipped by a vendor f.o.b. seller on December 31, 2012 $51,000 and received by Garza on January 5, 2013. Instructions: Based on the above information, calculate the amount that should appear on Garzas balance sheet at December 31, 2012, for inventory. Inventory per physical count Goods in transit to customer, f.o.b. destination Goods in transit from vendor, f.o.b. shipping point Inventory to be reported on balance sheet $441,000 33,000 51,000 $525,000

The consigned goods of $61,000 are not owned by Garza and were properly excluded.

The goods in transit to a customer of $46,000, shipped f.o.b. shipping point, are properly excluded from the inventory because the title to the goods passed when they left the seller (Garza) and therefore a sale and related cost of goods sold should be recorded in 2012.

The goods in transit from a vendor of $73,000, shipped f.o.b. destination, are properly excluded from the inventory because the title to the goods does not pass to Garza until the buyer (Garza) receives them.

153010886.xlsx.ms_office, Exercise 8-2 Solution, Page 3 of 18, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E8-2 (Inventoriable Costs) In your audit of Garza Company, you find that a physical inventory on December 31, 2012, showed merchandise with a cost of $441,000 was on hand at that date. You also discover the following items were all excluded from the $441,000 1. Merchandise of which is held by Garza on consignment. The consignor is $61,000 the Bontemps Company. 2. Merchandise costing which was shipped by Garza f.o.b. destination to a $33,000 customer on December 31, 2012. The customer was expected to receive the merchandise on January 6, 2013. 3. Merchandise costing which was shipped by Garza f.o.b. shipping point to a $46,000 customer on December 29, 2012. The customer was scheduled to receive the merchandise on January 2, 2013. 4. Merchandise costing shipped by a vendor f.o.b. destination on $73,000 December 30, 2012, and received by Garza on January 4, 2013. 5. Merchandise costing shipped by a vendor f.o.b. seller on December 31, 2012 $51,000 and received by Garza on January 5, 2013. Instructions: Based on the above information, calculate the amount that should appear on Garzas balance sheet at December 31, 2012, for inventory. Text Title Text Title Text Title Text Title Enter text explain as desire here. Amount Amount Amount Formula

Enter text explain as desire here.

Enter text explain as desire here.

153010886.xlsx.ms_office, Exercise 8-2, Page 4 of 18, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E8-9 (Periodic versus Perpetual Entries) Chippewas Company sells one product. Presented below is information for January for Chippewas Company. Jan 1 Inventory 100 units at $6.00 each Jan 4 Sale 80 units at $8.00 each Jan 11 Purchase 150 units at $6.50 each Jan 13 Sale 120 units at $8.75 each Jan 20 Purchase 160 units at $7.00 each Jan 27 Sale 100 units at $9.00 each Chippewas uses the FIFO cost flow assumption. All purchases and sales are on account. Instructions: (a) Assume Chippewas uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 110 units. Jan 4 Accounts Receivable Sales Revenue (80 units $8.00 each) Purchases (150 units $6.50 each) Accounts Payable Accounts Receivable Sales Revenue (120 units $8.75 each) Purchases (160 units $7.00 each) Accounts Payable Accounts Receivable Sales Revenue (100 units $9.00 each) 640 640 975 975 1,050 1,050 1,120 1,120 900 900

Jan 11

Jan 13

Jan 20

Jan 27

Jan 31

Inventory (110 units $7.00 each) 770 Cost of Goods Sold - [(100 units $6.00 each) + 1,925 (150 units $6.50 each) + (50 units $7.00 each)] Purchases [(150 units $6.50 each) + (160 units $7.00 each)] Beginning Inventory (100 units $6.00 each)

2,095 600

153010886.xlsx.ms_office, Exercise 8-9 Solution, Page 5 of 18, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: th (b) Compute the Accounting gross profit using the periodic Intermediate , 14 Edition bysystem. Kieso, Weygandt, and Warfield
Sales Revenue [(80 units $8.00 each) + (120 units $8.75 each) + (100 units $9.00 each)] Cost of goods sold Gross profit (c) Assume Chippewas uses a perpetual system. Prepare all necessary journal entries. Jan 4 Accounts Receivable 640 Sales Revenue (80 units $8.00 each) Cost of goods sold 480 Inventory (80 units $6.00 each) Jan 11 Inventory (150 units $6.50 each) Accounts payable Accounts Receivable Sales Revenue (120 units $8.75 each) Cost of goods sold Inventory Inventory (160 units $7.00 each) Accounts payable Accounts Receivable Sales Revenue (100 units $9.00 each) Cost of goods sold Inventory [(50units$6.50each)+(50units$7.00each)] 975 975 1,050 1,050 770 770 1,120 1,120 900 900 675 675 $2,590 1,925 $665

640 480

Jan 13

Jan 20

Jan 27

(d) Compute the gross profit using the perpetual system. Sales Revenue [(80 units $8.00 each) + (120 units $8.75 each) + (100 units $9.00each)] Cost of goods sold Gross profit

$2,590 1,925 $665

153010886.xlsx.ms_office, Exercise 8-9 Solution, Page 6 of 18, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E8-9 (Periodic versus Perpetual Entries) Chippewas Company sells one product. Presented below is information for January for Chippewas Company. Jan 1 Inventory 100 units at $6.00 each Jan 4 Sale 80 units at $8.00 each Jan 11 Purchase 150 units at $6.50 each Jan 13 Sale 120 units at $8.75 each Jan 20 Purchase 160 units at $7.00 each Jan 27 Sale 100 units at $9.00 each Chippewas uses the FIFO cost flow assumption. All purchases and sales are on account. Instructions: (a) Assume Chippewas uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 110 units. Jan 4 Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Text Title Text Title Text Title Text Title (b) Compute the gross profit using the periodic system. Text Title Text Title Text Title Amount Amount Formula Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount

Jan 11

Jan 13

Jan 20

Jan 27

Jan 31

153010886.xlsx.ms_office, Exercise 8-9, Page 7 of 18, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: (c) Assume Chippewas uses a perpetual system. Prepare all necessary journal entries. Intermediate Accounting , 14th Edition by Kieso, Weygandt, and Warfield
Jan 4 Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount

Jan 11

Jan 13

Jan 20

Jan 27

(d) Compute the gross profit using the perpetual system. Text Title Text Title Text Title Amount Amount Formula

153010886.xlsx.ms_office, Exercise 8-9, Page 8 of 18, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P8-3 (Purchases Recorded Gross and Net) Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method. Aug 10 Aug 13 Aug 15 Aug 25 Aug 28 Purchased merchandise on account, terms 2/10, n/30 Returned part of the purchase of Aug 10, and received credit on acct Purchased merchandise on account, terms 1/10, n/60 Purchased merchandise on account, terms 2/10, n/30 Paid invoice of August 15 in full. $12,000 $1,200 $16,000 $20,000

Instructions: (a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: (1) Prepare general journal entries to record the transactions. Purchases Aug 10 12,000 Accounts Payable 12,000 Aug 13 Accounts Payable Purchases Returns and Allowances Purchases Accounts Payable Purchases Accounts Payable Accounts Payable Cash 1,200 1,200 16,000 16,000 20,000 20,000 16,000 16,000

Aug 15

Aug 25

Aug 28

(2) Describe how the various items would be shown in the financial statements. Purchasesaddition in cost of goods sold section of income statement.

Purchase Returns and Allowancesdeduction from purchases in cost of goods sold section of the income statement. Accounts Payablecurrent liability in the current liabilities section of the balance sheet.

153010886.xlsx.ms_office, Problem 8-3 Solution, Page 9 of 18, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: th (b) Assuming that purchases are recorded at by net amounts and thatand discounts lost are treated as Intermediate Accounting , 14 Edition Kieso, Weygandt, Warfield
finance expenses: (1) Prepare general journal entries to record the transactions. Aug 10 Purchases Accounts Payable [$12,000 (100% - 2%)] Accounts Payable [$1,200 (100% - 2%)] Purchases Returns and Allowances Purchases Accounts Payable [$16,000 (100% - 1%)] Purchases Accounts Payable [$20,000 (100% - 2%)] Accounts Payable Purchases Discount Lost ($16,000 1%) Cash 11,760 11,760 1,176 1,176 15,840 15,840 19,600 19,600 15,840 160 16,000

Aug 13

Aug 15

Aug 25

Aug 28

(2) Prepare the adjusting entry necessary on August 31 if financial statements are to be prepared at that time. Aug 31 Purchases Discount Lost [($12,000 - $1,200) 2%] Accounts Payable 216 216

(3) Describe how the various items would be shown in the financial statements. Same as part (a) (2) except treat Purchases Discounts Lost as financial expense the income statement.

(c) Which of the two methods do you prefer and why? The second method is better theoretically because it results in the inventory being carried net of purchase discounts, and purchase discounts not taken are shown as an expense. The first method is normally used, however, for practical reasons.

153010886.xlsx.ms_office, Problem 8-3 Solution, Page 10 of 18, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P8-3 (Purchases Recorded Gross and Net) Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method. Aug 10 Aug 13 Aug 15 Aug 25 Aug 28 Purchased merchandise on account, terms 2/10, n/30 Returned part of the purchase of Aug 10, and received credit on acct Purchased merchandise on account, terms 1/10, n/60 Purchased merchandise on account, terms 2/10, n/30 Paid invoice of August 15 in full. $12,000 $1,200 $16,000 $20,000

Instructions: (a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: (1) Prepare general journal entries to record the transactions. Account Title Aug 10 Amount Account Title Amount Aug 13 Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Amount Amount Amount Amount Amount Amount Amount Amount

Aug 15

Aug 25

Aug 28

(2) Describe how the various items would be shown in the financial statements. Enter text answer here.

Enter text answer here.

Enter text answer here.

153010886.xlsx.ms_office, Problem 8-3, Page 11 of 18, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: th (b) Assuming that purchases are recorded at by net amounts and thatand discounts lost are treated as Intermediate Accounting , 14 Edition Kieso, Weygandt, Warfield
finance expenses: (1) Prepare general journal entries to record the transactions. Aug 10 Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount

Aug 13

Aug 15

Aug 25

Aug 28

(2) Prepare the adjusting entry necessary on August 31 if financial statements are to be prepared at that time. Aug 31 Account Title Account Title Amount Amount

(3) Describe how the various items would be shown in the financial statements. Enter text answer here.

(c) Which of the two methods do you prefer and why? Enter text answer here.

153010886.xlsx.ms_office, Problem 8-3, Page 12 of 18, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P8-4 (Compute FIFO, LIFO, and Average Cost) Hull Companys record of transactions concerning part X for the month of April was as follows. Purchases Sales Quantity: Unit Cost: Quantity: Apr 1 (Balance on hand) 100 $5.00 Apr 5 300 Apr 4 400 5.10 Apr 12 200 Apr 11 300 5.30 Apr 27 800 Apr 18 200 5.35 Apr 28 150 Apr 26 600 5.60 Apr 30 200 5.80 Instructions: (a) Compute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units only. Carry unit costs to the nearest cent. Purchases Dates and Units April 1 (balance on hand) Apr 4 Apr 11 Apr 18 Apr 26 Apr 30 Total units Total units sold Total units (ending inventory) 100 400 300 200 600 200 1,800 1,450 350 Unit Cost $5.00 $5.10 $5.30 $5.35 $5.60 $5.80 Sales Dates and Units Apr 5 Apr 12 Apr 27 Apr 28 Total units

300 200 800 150 1,450

(1) First-in, First-out, (FIFO). (Assuming costs are not computed for each withdrawal - Perpetual.) Date of Invoice Apr 30 Apr 26 No. Units Unit Cost 200 $5.80 150 $5.60 Value of ending inventory, FIFO, Periodic valuation: Total Cost $1,160.00 $840.00 $2,000.00

(2) Last-in, First-out, (LIFO). (Assuming costs are not computed for each withdrawal - Perpetual.) Date of Invoice Apr 1 Apr 4 No. Units Unit Cost 100 $5.00 250 $5.10 Value of ending inventory, LIFO, Periodic valuation: Total Cost $500.00 $1,275.00 $1,775.00

(3) Average cost. Date of Invoice Apr 1 Apr 4 Apr 11 Apr 18 Apr 26 Apr 30 Total Available No. Units 100 400 300 200 600 200 1,800 Unit Cost $5.00 $5.10 $5.30 $5.35 $5.60 $5.80 Total Cost $500.00 $2,040.00 $1,590.00 $1,070.00 $3,360.00 $1,160.00 $9,720.00

Average cost per unit: Units in ending inventory: Ending valuation of inventory, average cost method

$5.40 350 $1,890.00

(b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory in 1, 2, and 3 above? Carry average unit costs to four decimal places. 153010886.xlsx.ms_office, Problem 8-4 Solution, Page 13 of 18, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: (b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would th be shown as Accounting ending inventory in 1, 2, andby 3 above? Carry average unit costs to four decimal places. Intermediate , 14 Edition Kieso, Weygandt, and Warfield
(1) First-in, First-out, (FIFO). (Assuming costs are computed for each withdrawal - Perpetual.) The valuation of inventory under FIFO perpetual would be the same in FIFO Periodic, as shown in part (a), $2,000.00. (2) Last-in, First-out, (LIFO). (Assuming costs are computed for each withdrawal - Perpetual.) The area within gray highlighting should contain sales details. Date Apr 1 Apr 4 Purchased No. of units 100 100 400 100 400 Unit cost $5.00 $5.00 $5.10 $5.00 $5.10 Sold No. of units Event Detail Unit cost Balance* No. of units 100 100 400 100 100 0 100 100 300 100 100 100 Unit cost $5.00 Amount $500.00

$5.00 $500.00 $5.10 $2,040.00 Balance $2,540.00 $5.00 $500.00 $5.10 $510.00 $0.00 $0.00 Balance $1,010.00 $5.00 $500.00 $5.10 $510.00 $5.30 $1,590.00 Balance $2,600.00 $500.00 $510.00 $530.00 $0.00 Balance $1,540.00 $5.00 $500.00 $5.10 $510.00 $5.30 $530.00 $5.35 $1,070.00 Balance $2,610.00 $5.00 $500.00 $5.10 $510.00 $5.30 $530.00 $5.35 $1,070.00 $5.60 $3,360.00 Balance $5,970.00 $5.00 $500.00 $5.10 $510.00 $5.30 $530.00 $5.35 $0.00 $5.60 $0.00 Balance $1,540.00 $5.00 $5.10 $5.30 Balance $500.00 $255.00 $0.00 $755.00 $5.00 $5.10 $5.30

Apr 5

300

300

$5.10

Apr 11

100 100 300 100 100 300

$5.00 $5.10 $5.30 $5.00 $5.10 $5.30

Apr 12

200

200

$5.30

Apr 18

100 100 100 200 100 100 100 200 600 100 100 100 200 600 100 100 100 100 50 200

$5.00 $5.10 $5.30 $5.35 $5.00 $5.10 $5.30 $5.35 $5.60 $5.00 $5.10 $5.30 $5.35 $5.60 $5.00 $5.10 $5.30 $5.00 $5.10 $5.80

100 100 100 200 100 100 100 200 600 100 100 100 0 0 100 50 0 100 50 200

Apr 26

Apr 27

800

200 600

$5.35 $5.60

Apr 28

150

50 100

$5.10 $5.30

Apr 30

$5.00 $500.00 $5.10 $255.00 $5.80 $1,160.00 Balance $1,915.00

153010886.xlsx.ms_office, Problem 8-4 Solution, Page 14 of 18, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield
The valuation of inventory under LIFO - Perpetual is $1,915.00 with detail as shown. (3) Average Cost. (Perpetual.) The area within gray highlighting should contain sales details. Date Apr 1 Apr 4 Apr 5 Apr 11 Apr 12 Apr 18 Apr 26 Apr 27 Apr 28 Apr 30 200 $5.8000 $1,977.31 200 600 $5.3500 Balance $5.6000 800 150 Balance $5.4487 Balance $5.4487 Balance 1,100 300 150 $5.4487 $5.4487 $5.4487 $5,993.60 $1,634.62 $817.31 500 $5.2672 $2,633.60 300 $5.3000 200 Balance $5.2120 Balance 500 300 $5.2120 $5.2120 $2,606.00 $1,563.60 Purchased No. of units 100 400 Unit cost $5.0000 $5.1000 300 Balance $5.0800 Balance Sold No. of units Unit cost Balance No. of units 100 500 200 Unit cost* $5.0000 $5.0800 $5.0800 Ext'd Inv Valuation $500.00 $2,540.00 $1,016.00

Balance 350 $5.6495 Slight differences in values are due to significant digit rounding. The valuation of inventory under Average Cost - Perpetual is $1,977.31 with detail as shown.

153010886.xlsx.ms_office, Problem 8-4 Solution, Page 15 of 18, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P8-4 (Compute FIFO, LIFO, and Average Cost) Hull Companys record of transactions concerning part X for the month of April was as follows. Purchases Sales Quantity: Unit Cost: Quantity: Apr 1 (Balance on hand) 100 $5.00 Apr 5 300 Apr 4 400 5.10 Apr 12 200 Apr 11 300 5.30 Apr 27 800 Apr 18 200 5.35 Apr 28 150 Apr 26 600 5.60 Apr 30 200 5.80 Instructions: (a) Compute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units only. Carry unit costs to the nearest cent. Purchases Dates and Units April 1 (balance on hand) Apr 4 Apr 11 Apr 18 Apr 26 Apr 30 Total units Total units sold Total units (ending inventory) Quantity Quantity Quantity Quantity Quantity Quantity Formula Quantity Formula Unit Cost Amount Amount Amount Amount Amount Amount Sales Dates and Units Apr 5 Apr 12 Apr 27 Apr 28 Total units

Quantity Quantity Quantity Quantity Formula

(1) First-in, First-out, (FIFO). (Assuming costs are not computed for each withdrawal - Perpetual.) Date of Invoice Apr 30 Apr 26 No. Units Unit Cost Quantity Amount Quantity Amount Value of ending inventory, FIFO, Periodic valuation: Total Cost Formula Formula Formula

(2) Last-in, First-out, (LIFO). (Assuming costs are not computed for each withdrawal - Perpetual.) Date of Invoice Apr 1 Apr 4 No. Units Unit Cost Quantity Amount Quantity Amount Value of ending inventory, LIFO, Periodic valuation: Total Cost Formula Formula Formula

(3) Average cost. Date of Invoice Apr 1 Apr 4 Apr 11 Apr 18 Apr 26 Apr 30 Total Available No. Units Quantity Quantity Quantity Quantity Quantity Quantity Formula Unit Cost Amount Amount Amount Amount Amount Amount Total Cost Formula Formula Formula Formula Formula Formula Formula

Average cost per unit: Units in ending inventory: Ending valuation of inventory, average cost method

Amount Quantity Formula

153010886.xlsx.ms_office, Problem 8-4, Page 16 of 18, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield
(b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory in 1, 2, and 3 above? Carry average unit costs to four decimal places. (1) First-in, First-out, (FIFO). (Assuming costs are computed for each withdrawal - Perpetual.) Enter text answer here as required. (2) Last-in, First-out, (LIFO). (Assuming costs are computed for each withdrawal - Perpetual.) The area within gray highlighting should contain sales details. Date Apr 1 Apr 4 Balance Apr 5 Purchased No. of units 100 Unit cost $5.00 Sold No. of units Event Detail Unit cost Balance* No. of units 100 Unit cost $5.00 Amount $500.00

Balance Apr 11

Balance Apr 12

Balance Apr 18

Balance Apr 26

Balance Apr 27

Balance Apr 28

Balance Apr 30

153010886.xlsx.ms_office, Problem 8-4, Page 17 of 18, 6/20/2013, 6:59 AM

Name: Date: Apr 30 Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield
Balance Enter text answer here as appropriate (3) Average Cost. (Perpetual.) The area within gray highlighting should contain sales details. Date Apr 1 Apr 4 Apr 5 Balance Apr 11 Balance Apr 12 Balance Apr 18 Balance Apr 26 Balance Apr 27 Balance Apr 28 Balance Apr 30 Balance Slight differences in values are due to significant digit rounding. Enter text answer here as appropriate. Purchased No. of units 100 Unit cost $5.0000 Balance Sold No. of units Unit cost Balance No. of units 100 Unit cost* $5.0000 Ext'd Inv Valuation $500.00

153010886.xlsx.ms_office, Problem 8-4, Page 18 of 18, 6/20/2013, 6:59 AM