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Intermediate Accounting Chapter 11 Inventory Cost Flow Problem 11-1 Bronze Company FIFO Jan. 20 Purchase 750,000 (2.5M x 300) Purchase 800,000 (2M x 400) P1,550, WAM Units Unit Cost Total cost Jan. 1 Balance on hand 6,000 150 900, 5 Purchase 2,000 200 400, 20 Purchase 2,500 300 750, 25 Purchase 2,000 400 800, Goods available for sale 12,500 228 2,850, Ending inventory 4,500 228 1,026, Problem 11-2 Furlough Company Units Unit Cost Total cost
1. FIFO (Periodic) Lot no. 4 500 100 50, 5 14,500 90 1,305, **15,000 1,355,
- Beginning Inventory** 10,000 80 800, Purchases: Lot no. 1 2,000 100 200, 2 8,000 110 880, 3 6,000 120 720, 4 9,500 100 950, 5 14,500 90 1,305, **Goods available for sale 50,000 4,855, WAM 15,000 97.10 P1,456,
- Specific identification** Lot no. 3 6,000 120 720, 4 9,000 100 900, 15,000 1,620, Problem 11-3 Emcee Company
Units Unit Cost Total cost FIFO Dec. 17 10,000 45 450, 22 20,000 4 860, 30,000 1,310, WAM Dec. 1 10,000 52 520, 7 30,000 50 1,500, 17 60,000 45 2,700, 22 20,000 43 860, Goods available for sale 120,000 5,580, Inventory (5,580,000 ÷ 120,000) 30,000 46.50 P1,395, FIFO AVERAGE Goods available for sale 5,580,000 5,580, Inventory 12/31 (1,310,000) (1,395,000) Cost of goods sold 4,270,000 4,185, Problem 11-4 Gross Company Units Unit Cost Total cost FIFO Ending inventory 4,000 210 840, Cost of goods sold 2,700, Moving average Ending inventory 4,000 252.50 1,010, Cost of goods sold 2,530, Problem 11-5 Tragic Company Purchases Sales Inventory Increment 2017 5,000 4,000 1, 2018 9,000 7,000 2, 2019 15,000 12,000 3, Total inventory 12/31 (units) 6,
Jan. 31 Sale 200, July 31 Sale 855, Dec. 31 Sale 708, Cost of goods sold 1,763, Problem 11-7 Slack Company FIFO Units Unit cost Total cost October 1 Purchase 300 10,000 3,000, Weighted Average January 1 200 7,500 1,500, April 5 300 9,000 2,700, October 1 500 10,000 5,000, Goods available for sale 1,000 9,200, Inventory – December 31 (9,200,000/1,000) 300 9,200 2,760, FIFO Weighted average Inventory – January 1 1,500,000 1,500, Purchases 2,700,000 2,700, Goods available for sale 9,200,000 9,200, Less: Inventory – December 31 3,000,000 2,760, Cost of goods sold 6,200,000 6,440, Problem 11-8 Harbinger Company Sales 6,000, Gross profit (2,400,000) Cost of goods sold 3,600, Inventory – July 31 928, Cost of goods available for sale 4,528, Purchases for July (3,174,000) Inventory – July 1 1,354, Quantity Unit cost Total cost July 12 1,000 60 60, 25 14,000 62 868, FIFO Inventory – July 31 15,000 928, Problem 11-9 Narra Company Units Average unit cost Total cost
- Inventory – December 31, 2020 layer 11,000 138 1,518,
- Inventory – December 31, 2019 14,000 1,480, Purchases – 2020 12,000 138 1,656, Materials available 26,000 3,136,
Less: Inventory – December 31, 2020 11,000 1,518, Raw material used – 2020 15,000 1,168,
- Inventory – December 31, 2021 2021 layer 15,000 153 2,295,
- Inventory – December 31, 2020 11,000 1.518. Purchases – 2021 20,000 153 3,060, Material available 31,000 4,578, Less: Inventory – December 31, 2021 15,000 2,295, Raw material used – 2021 16,000 2,283, Problem 11-10 Apitong Company Problem 11-10 Apitong Company Available for sale 42, Units sold (2,800,000/100) 28, Ending Inventory 14, Units Unit cost Total cost FIFO September 5 2,000 43.00 86, 25 12,000 42.50 510, 14,000 596, Weighted average (1,753,500/42,000) 14,000 41.75 584, Average FIFO Available for sale 1,753,500 1,753, Less: Ending inventory 584,500596, Cost of goods sold 1,169,000 1,157, (Schedule 1) (Schedule 2) Problem 11-11 Creature Company FIFO June 21 (1,500 x 330) 495, 30 (2,500 x 313) 782, Cost of ending inventory 1,277, Units Unit cost Total cost Average method Jan. 1 3,000 300 900, 4 7,500 304 2,280, 8 4,000 320 1,280, 13 6,000 325 1,950, 21 3,500 330 1,155, 30 2,500 313 782, 26,500 315 8,147,
PROBLEM 11-14 Landmark Company Purchase 26,850, Improving and subdividing cost 43,500, Total cost 70,350, Group Sales price Fraction Cost 1 (3,000,000 x 20) 60,000,000 60/105 40,200, 2 (2,500,000 x 10) 25,000,000 25/105 16,750, 3 (2,000,000 x 10) 20,000,000 10/105 13,400, 105,000,000 70,350, Group Cost per lot Unsold Cost 1 (40,200,000/20) 2,010,000 5 10,050, 2 (16,750,000/10) 1,675,000 4 6,700, 3 (13,400,000/10) 1,340,000 3 4,020, 20,770, Problem 11-15 Solid Company Sales price Fraction Total cost Highland (1,000,000 x 20) 20,000,000 20/100 20/ Midland (750,000 x 40) 30,000,000 30/100 18,000, Lowland (500,000 x 100) 50,000,000 50/100 30,000, 100,000,000 60,000, Problem 11-16 Massive Company Answer: D. 365, Units Total Cost January 1 200 300, April 3 300 525, October 1 500 1,000, Total 1,000 1,825, Less: Sales 800 Ending Inventory 200 Average unit cost (1,825,000/1,000) 1, Cost of inventory (200 x 1,825) 365, Problem 11-17 Jailbird Company Answer: A. 7,625, Units Unit cost Total January 31 – Balance 50,000 152.50 7,625,
Problem 11-18 Yakal Company
