# Accounting Principles for Kieso by bqy69086

VIEWS: 0 PAGES: 7

• pg 1
```									          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
(1)     Ending Inventory
Date       Units    Unit Cost     Total Cost
Mar 26       1,500         \$11       \$16,500
Mar 21       2,000          10       \$20,000
3,500                   \$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       Units    Unit Cost     Total Cost
Mar 1        1,500         \$7      \$10,500
Mar 5        2,000          8      \$16,000
3,500                  \$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
. At the beginning of March,
\$7

ory system.

of the assumed cost
oods sold under the
ance sheet and (2) the
Name:                                                                     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      \$7
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
Mar 5     Purchase
Mar 13     Purchase
Mar 21     Purchase
Mar 26     Purchase
Total

(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)    Ending Inventory
Date        Units        Unit Cost      Total Cost
Mar 26
Mar 21

Ending inventory = 0 available for sale - 12,500 CDs sold = -12,500 CDs

Proof of Cost of Goods Sold
Date       Units           Unit Cost     Total Cost
Mar 1
Mar 5
Mar 13
Mar 21

FileName: d781c8c8-0780-4842-bfcf-953e512b3961.xls, Tab: Problem P6-2A, Page 5 of 7, 12/4/2010, 2:35 PM
Name:                                                              Date:
Instructor:                                                          Course:
LIFO
Accounting Principles, Eighth Edition by Weygandt, Kieso, and Kimmel
(1)     Ending Inventory
Date         Units        Unit Cost    Total Cost
Mar 1
Mar 5

Proof of Cost of Goods Sold
Date       Units           Unit Cost    Total Cost
Mar 26
Mar 21
Mar 13
Mar 5

FileName: d781c8c8-0780-4842-bfcf-953e512b3961.xls, Tab: Problem P6-2A, Page 6 of 7, 12/4/2010, 2:35 PM
Instructions for the Microsoft Excel Templates

Detail and information on Excel is contained within the manual.

Striking the "F1" key or following the path "Windows>Excel Help" will invoke the Office Assistant
and bring up one of several help menus.

Type your name into the cell "D5". This will be copied by formula to the rest of the pages as required.

Type the due date of your problem into cell "I5". This will be copied by formula to the rest of the pages as required.

Type the instructor's name into cell "D6". This will be copied by formula to the rest of the pages as required.

Type the course identifier into cell "I6". This will be copied by formula to the rest of the pages as required.

The problem is identified for you in cell "B7".

In "DATE" cells enter the date in any of several formats and Excel will format it correctly.

If more than one page is preformatted into the problem, page breaks are preset and formulas are
set to copy the header into the remaining pages.

Place the proper account title in the cell where the word "ACCOUNT" appears on the template.

Place the amount in the cell where the word "AMOUNT" appears on the template. A formula may be placed in

Enter a number like 914 to signify units or gallons where the word "NUMBER" appears.

Write a formula into cells where the word "FORMULA" appears. In these cells, an amount calculated outside of

Place the explanation for the entry in the cell where the word "EXPLANATION" appears on the template.

Insert the account number where "ACCT #" appears on the template during posting.

Insert the journal reference where "JOURN #" appears on the template during posting.

Insert the title in the cell where "TITLE" appears on the template.

The print area is defined to fit onto 8 1/2" X 11" sheets in portrait or landscape mode as required.

The gray filled cells define the perimeter of the problem and the print area.

The problem is formatted for whole dollars with comma separations (no cents) except where required.

The display may have "Freeze Pane" invoked so column titles remain visible during data entry.

Negative values may be shown as (\$400) vice -\$400.

Enter a string like: (\$259,417 X 12 months) + (0.3651 X 5,434,631) where the word TEXT appears.

```
To top