Name: Key

Date:
Instructor:
Course:
Accounting Principles, Eighth Edition by Weygandt, Kieso, and Kimmel
Solving Accounting Principles Problems Using Microsoft Excel
for Windows by Rex A Schildhouse

P6-2A Glanville Distribution markets CDs of the performing artist Harrilyn Clooney. At the beginning of March,
Glanville had in beginning inventory
1,500
Clooney CDs with a unit cost of
During March Glanville made the following purchases of Clooney CDs:
Date:
Quantity:
Cost:
Date:
Quantity:
Cost:
Mar 5
3,000
$8
Mar 21
4,000
$10
Mar 13
5,500
$9
Mar 26
2,000
$11
During March

12,500

units were sold. Glanville uses a periodic inventory system.

Instructions:
(a) Determine the cost of goods available for sale.
COST OF GOODS AVAILABLE FOR SALE
Date
Explanation Units
Unit Cost Total Cost
Mar 1 Inv 10/01
1,500
$7 $10,500
Mar 5 Purchase
3,000
8 $24,000
Mar 13 Purchase
5,500
9 $49,500
Mar 21 Purchase
4,000
10 $40,000
Mar 26 Purchase
2,000
11 $22,000
Total
16,000
$146,000
(b) Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost
flow methods (FIFO, LIFO, and average cost). Prove the accuracy of the cost of goods sold under the
FIFO and LIFO methods.
FIFO
(1)
Date
Mar 26
Mar 21

Ending Inventory
Units
Unit Cost
1,500
$11
2,000
10
3,500

Total Cost
$16,500
$20,000
$36,500

Ending inventory = 16,000 available for sale - 12,500 CDs sold = 3,500 CDs
Proof of Cost of Goods Sold
Date
Units
Unit Cost Total Cost
Mar 1
1,500
$7
$10,500
Mar 5
3,000
8
$24,000
Mar 13
5,500
9
$49,500
Mar 21
2,500
10
$25,000
12,500
$109,000
LIFO
(1)

Ending Inventory

Date
Mar 1
Mar 5

Units
Unit Cost
1,500
$7
2,000
8
3,500

Total Cost
$10,500
$16,000
$26,500

Proof of Cost of Goods Sold

Date
Units
Unit Cost Total Cost
Mar 26
2,000
$11
$22,000
Mar 21
4,000
10
$40,000
Mar 13
5,500
9
$49,500
Mar 5
1,000
8
$8,000
12,500
$119,500
AVERAGE COST
(1)
Ending Inventory
$

31,937.50
Units
Unit cost: Total cost:
12,500 $ 9.13 $114,063

(c) Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the
highest cost of goods sold for the income statement?
(1)
LIFO

(2)
FIFO

y. At the beginning of March,

$7

tory system.

of the assumed cost

goods sold under the

ance sheet and (2) the

Name:

Date:

Instructor:
Accounting Principles, Eighth Edition by Weygandt, Kieso, and Kimmel
Solving Accounting Principles Problems Using Microsoft Excel
for Windows by Rex A Schildhouse

Course:

P6-2A Glanville Distribution markets CDs of the performing artist Harrilyn Clooney. At the beginning of March,
Glanville had in beginning inventory
1,500
Clooney CDs with a unit cost of
During March Glanville made the following purchases of Clooney CDs:
Date:
Quantity:
Cost:
Date:
Quantity:
Cost:
Mar 5
3,000
$8
Mar 21
4,000
$10
Mar 13
5,500
$9
Mar 26
2,000
$11
During March

12,500

units were sold. Glanville uses a periodic inventory system.

Instructions:
(a) Determine the cost of goods available for sale.

Date
Mar 1
Mar 5
Mar 13
Mar 21
Mar 26
Total

COST OF GOODS AVAILABLE FOR SALE

Explanation Units
Unit Cost
Total Cost
Inv 10/01
Purchase
Purchase
Purchase
Purchase

(b) Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO,
LIFO, and average cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods.
FIFO
(1)
Date
Mar 26
Mar 21

Ending Inventory
Units
Unit Cost

Total Cost

Ending inventory = 0 available for sale - 12,500 CDs sold = -12,500 CDs
Proof of Cost of Goods Sold
Date
Units
Unit Cost
Mar 1
Mar 5
Mar 13
Mar 21

Total Cost

FileName: 325951324.xls, Tab: Problem P6-2A, Page 5 of 10, 08/06/2016, 22:12:12

LIFO
(1)
Date
Mar 1
Mar 5

Name:

Date:

Instructor:

Course:

Ending Inventory
Units
Unit Cost

Proof of Cost of Goods Sold

Date
Units
Unit Cost
Mar 26
Mar 21
Mar 13
Mar 5

Total Cost

Total Cost

FileName: 325951324.xls, Tab: Problem P6-2A, Page 6 of 10, 08/06/2016, 22:12:12

of March,
$7

st flow methods (FIFO,

hods.

FileName: 325951324.xls, Tab: Problem P6-2A, Page 7 of 10, 08/06/2016, 22:12:12

FileName: 325951324.xls, Tab: Problem P6-2A, Page 8 of 10, 08/06/2016, 22:12:12

Instructions for the Microsoft Excel Templates

Detail and information on Excel is contained within the manual.
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and bring up one of several help menus.
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Enter a string like: ($259,417 X 12 months) + (0.3651 X 5,434,631) where the word TEXT appears.