Valix Finacc vol 1 Problem 7-27

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 7-27

Available for sale                                                                                                        42,000

Units sold (2,800,000/100)                                                                                             28,000

Ending inventory                                                                                                         14,000

                                                                                 Units                Unit cost           Total cost

FIFO

      September   5                                                      2,000                43.00                  86,000                

                          25                                                    12,000               42.50                510,000

                                                                                 14,000                                       596,000

Weighted average (1,753,500/42,000)                      14,000               41.75                584,500

                                                                                                     Average                   FIFO

Available for sale                                                                         1,753,500              1,753,500

Less: Ending inventory                                                                     584,500                 596,000 

Cost of sales                                                                                 1,169,000              1,157,500

                                                                                                       (Sch. 1)                (Sch. 2)