# Cost of Goods Formula - Excel

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```					Instructions for the Microsoft Excel Templates

Be advised, the worksheet and workbooks are not protected.

Extensive detail and information 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

You should enter your name, course ID, date, and instructor's name into the cells at the top of the page.

Each page contains a page footer with a Page # of Page ## as well as time and date to assist in assembly of multiple pages.

Each worksheet contains the identification of the problem or exercise.

All formatting should have been accomplished to provide satisfactory presentation. See the text for additional assistance in
formating.

If more than one page is required by the problem, the page breaks are preset.

In general, the yellow highlighted cells are the cells which work and effort should be presented.

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

Place the value in the cell where the word "Value" or "Amount" appears on the template. A formula may be placed in some
of these cells.

Write a formula into cells where the word "Formula" appears. In these cells, an amount calculated can be entered. An amount
can be placed in these cells.

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

Insert the account number where "Acct Nbr" 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) or -\$400.

Consider using "Split" panes to assist in copy and paste of data.

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Much of the exercises and problems can have data entered by the "look to" or "=A34" type formula where cell A34 contains
the data to be entered. This precludes typing and data entry errors.

11efe634-b85d-4e56-8d26-852ab15fb603.xls, Page 2 of 4, 3/16/20118:31 PM
Name:                                                         Date:
Instructor:                                                    Course:
Financial Accounting, Fifth Edition by Kimmel, Weygandt, and Kieso
Solving Financial Accounting Problems Using Microsoft Excel for Windows
by Rex A Schildhouse
P6-3A, Determine cost of goods sold and ending inventory using FIFO, LIFO, and average cost in a periodic
inventory system, and assess financial statement effects.
Reeble Company Inc. had a beginning inventory of               200      units of Product MLN at a cost of
\$8.00        per unit. During the year, purchases were:
Feb 20          700           @          \$9.00                 Aug 12        400          @         \$11.00
May 5           500           @         \$10.00                 Dec 8         100          @         \$12.00
Reeble Company uses a periodic inventory system. Sales totaled                1,400       units

Instructions:
(a) Determine the cost of goods available for sale.
COST OF GOODS AVAILABLE FOR SALE
Date                Explanation        Units      Unit Cost                    Total Cost
Date       Text                          Quantity      Amount                       Formula
Date       Text                          Quantity      Amount                       Formula
Date       Text                          Quantity      Amount                       Formula
Date       Text                          Quantity      Amount                       Formula
Date       Text                          Quantity      Amount                       Formula
Total                                     Formula                                    Formula

(b) Determine the ending inventory and 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. (Round
average unit cost to three decimal places.)
(b)(1) FIFO                                                  (b)(2) FIFO
Ending Inventory                                           Cost of Goods Sold
Date         Units     Unit Cost Total Cost               Cost of goods available for sale     Amount
Date         Quantity    Amount    Formula                Title                                Amount
Date         Quantity    Amount    Formula                Title                                Formula
Formula               Formula

Proof of Cost of Goods Sold
Date             Units           Unit Cost         Total Cost
Date                Quantity          Amount            Formula
Date                Quantity          Amount            Formula
Date                Quantity          Amount            Formula
Formula                             Formula

11efe634-b85d-4e56-8d26-852ab15fb603.xls, Page 3 of 4, 3/16/20118:31 PM
Name:                                                       Date:
Instructor:                                                    Course:
Financial Accounting, Fifth Edition by Kimmel, Weygandt, (2) LIFO
(b) (1) LIFO                                    (b) and Kieso
Ending Inventory                                           Cost of Goods Sold
Date       Units    Unit Cost Total Cost                 Cost of goods available for sale       Amount
Date       Quantity   Amount    Formula                  Title                                  Amount
Date       Quantity   Amount    Formula                  Title                                  Formula
Formula              Formula

Proof of Cost of Goods Sold
Date             Units           Unit Cost          Total Cost
Date                Quantity          Amount             Formula
Date                Quantity          Amount             Formula
Date                Quantity          Amount             Formula
Date                Quantity          Amount             Formula
Formula                              Formula

(b)(1) Average Cost                                         (b)(2)   Average Cost
Ending Inventory                                        Cost of Goods Sold
Inventory cost =                            Amount          Cost of goods available for sale       Amount
Total units =                               Quantity        Title                                  Amount
Title                                       Formula         Title                                  Formula

Ending inventory units =                    Quantity
Title                                       Amount
Title                                       Formula

(c) Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold
for the income statement?

11efe634-b85d-4e56-8d26-852ab15fb603.xls, Page 4 of 4, 3/16/20118:31 PM

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