Chapter 7

1 Unadjusted balance 260,000.00

a 11,000.00
b 5,000.00
c - 16,000.00
d 20,000.00
e - 4,000.00
Adjusted balance 276,000.00

2 No adjustments

3 Beginning inventory 122,000.00

Purchases 540,000.00
Freight in 10,000.00
Transport - in 5,000.00
Ending inventory - 165,000.00
COGS 512,000.00

4 Mark up 16,000.00
Goods held on consignment 27,000.00
Non inventory portion 43,000.00

5 Net
Inventory 1 & 2 180,000.00
Net of discount 0.98
Net 176,400.00

Gross
Inventory 1 80,000.00
Net of discount 0.98
Net 78,400.00
Inventory 2 100,000.00
Total 178,400.00

6 Inventory purchased (380K x 98%) 372,400.00

Adjustment due to forfeited 7,600.00
Balance of AP 380,000.00

7 Ending inventory
Merchandise 200,000.00
Discount 0.98
Net 196,000.00
Remaining inventory 0.10
Ending inventory 19,600.00

Cost of Good Sold

Net 196,000.00
Ending inventory - 19,600.00
Cost of Good Sold 176,400.00
8 Ending inventory (200,000 x 10%) 20,000.00

Cost of Goods Sold

Merchandise 200,000.00
Sold 0.90
Sold portion 180,000.00
Discount 3,200.00
Cost of Goods Sold 176,800.00

Ending inventory (200,000 x 10%) - (3200*10%)

19,680.00

Cost of Goods Sold (180,000) - (3200 * 90%)

177,120.00

9 Ending inventory 1000 units

Applies to both FIFO Periodic and perpetual
FIFO
Purchases June 24 (700 x 30) 21,000.00
Purchases June 14 (300 x 35) 10,500.00
Ending inventory 31,500.00

Goods available for sale 82,600.00

Ending inventory - 31,500.00
COGS 51,100.00

10 PERIODIC
Weighted average 82600 / 2900 28.48
Ending Inventory (1,000 * 28.48) 28,480.00

Goods available for sale 82,600.00

Ending inventory - 28,480.00
COGS 54,120.00

Weighted Average Perpetual

Transaction Qty Unit Cost In pesos

Balance 1,400.00 24.00 33,600.00
Sales - 400.00 - 9,600.00
Purchase 800.00 35.00 28,000.00
Balance 1,800.00 28.89 52,000.00
Sales - 900.00 - 26,000.00
Purchase 700.00 30.00 21,000.00
Balance 1,600.00 29.38 47,000.00
Sales - 600.00 - 17,625.00
Balance 1,000.00 29.38 29,375.00

Cost of Goods Sold (all sales) - 53,225.00

Chapter 8
1 Beg 80,000.00
Purchases 348,000.00
COGS (454,000-2000) x .75 - 339,000.00
End (based on sales) 89,000.00

Beg 80,000.00
Purchases 348,000.00
COGS (454,000-2000) / 1.25 - 361,600.00
End (based on cost) 66,400.00

2 Beg 162,000.00
Purchases 3,412,000.00
GAFS 3,574,000.00
COGS (4,654,000 - 10,000) x .65 3,018,600.00
Ending Inventory 555,400.00
In transit - 56,000.00
Counted - 443,000.00
Loss due to theft 56,400.00

3 2001
Net Sales 772,000.00
Cost of sales
Net Purchases 813880
Inventory end -173120 640,760.00
GP 131,240.00
GPR 0.17
Add increase 0.03
GPR in 2002 0.20

2002
Beg 173,120.00
Net purchases 627,400.00
COGS (836,000-20,000) x 80% 652,800.00
Ending Inventory 147,720.00
Undamaged goods (24,000 x 80%) - 19,200.00
Salvage value - 3,600.00
Loss 124,920.00
4 Payments to suppliers 80,000.00
Increase in accounts payable 10,000.00
Purchases during the period 90,000.00

Inventory
Purchases during the period 90,000.00
Decrease In inventory (usage of inv) 30,000.00
Cost of Goods Sold 120,000.00

5 AP beg - 29,000.00
Payments 20,000.00
Returns 2,500.00
Discounts 5,000.00
AP end 45,000.00
Purchases 43,500.00

Raw materials
Beg 5,000.00
Purchases 43,500.00
Freight in 1,000.00
Returns - 2,500.00
Discounts - 5,000.00
End inv - 6,000.00
RM used 36,000.00

WIP
Beg 20,000.00
RM used 36,000.00
DL 16,000.00
FOH 6,000.00
End - 27,000.00
Cost of goods manufactured 51,000.00

FG
Beg 23,000.00
Cost of goods manufactured 51,000.00
Cost of goods sold (75,000-15,000)/1.33 - 45,000.00
End 29,000.00

6 Beg 11,000.00
Purchases 150,000.00
End - 15,000.00
RM used 146,000.00
7 Cost Retail
Beg inv 45,000.00 75,000.00
Purchases 270,000.00 590,000.00
Freight-in 6,750.00
Markups 50,000.00
Markdowns - 20,000.00
TGAS 321,750.00 695,000.00
Net sales, sales dicount and shrinkage - 612,000.00
Ending inventory at retail 83,000.00

Average cost 46.29%

Ending inventory 38,424.82
COGS 283,325.18

FIFO 44.64%
Ending inventory 37,048.79
COGS 284,701.21

8 Cost Retail
Inventory, January 1 20,000.00 28,000.00
Net purchases 103,200.00 143,400.00
Departmental transfers-in 2,000.00 3,000.00
Departmental transfers-out - 1,600.00 - 2,400.00
Net markups 8,000.00
Net markdowns - 18,000.00
Abnormal spoilage - 10,000.00 - 14,000.00
Goods available for sale 113,600.00 148,000.00
Net sales - 84,000.00
Ending inventory at retail 64,000.00

Average cost 76.76%

Ending inventory 49,124.32
COGS 64,475.68

9 FIFO 78.00%
Ending inventory 49,920.00
COGS 63,680.00

10 Beg 36,000.00
Purchases 320,000.00
Discounts - 3,000.00
Freigh-in 18,000.00
Goods available for sale at cost 371,000.00

Sales 454,000.00
Sales returns - 2,000.00
Ending inventory 78,000.00
Goods available for sale at retail 530,000.00

Ratio (Cost/Retail) 70.00%

Ending inventory (78,000 x ratio) 54,600.00