Valix Finacc vol 1 Problem 7-19

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 7-19

Units            Unit cost            Total cost

FIFO

     December 17                                                          10,000              45                    450,000

                        22                                                         20,000               43                   860,000

                                                                                    30,000                                  1,310,000

Average method

     December   1                                                        10,000               52                    520,000

                           7                                                      30,000               50                 1,500,000

                         17                                                       60,000               45                 2,700,000

                         22                                                        20,000              43                    860,000

     Available for sale                                                 120,000                                   5,580,000

     Inventory (5,580,000/120,000)                                 30,000               46.50            1,395,000

                                                                                                         

                                                                                                            FIFO             Average

Goods available for sale                                                                 5,580,000          5,580,000

Less: Inventory – December 31                                                        1,310,000          1,395,000

Cost of goods sold                                                                          4,270,000          4,185,000