会计学原理19版练习答案：Chapter_06_Inventories and Cost of Sales

1、McGraw-Hill Companies, 2009Solutions Manual, Chapter 6329Chapter 6Inventories and Cost of SalesQUESTIONS 1.(a) FIFO: The cost of the first (earliest) items purchased in inventory flow to cost of goods sold first. (b) LIFO: The cost of the last (most recent) items purchased in inventory flow to cost

2、of goods sold first. 2.Merchandise inventory is disclosed on the balance sheet as a current asset. It is also sometimes reported in the income statement as part of the calculation of cost of goods sold. 3.Incidental costs sometimes are ignored in computing the cost of inventory because the expense o

3、f tracking such costs on a precise basis can outweigh the benefits gained from the increased accuracy. The accounting constraint of materiality permits such practices when the effects on the financial statements are not significant (that is, when such practices do not impact business decisions). 4.L

4、IFO will result in the lower cost of goods sold when costs are declining because it assigns the most recent, lower cost purchases to cost of goods sold. 5.The full-disclosure principle requires that the nature of the accounting change, the justification for the change, and the effect of the change o

5、n net income be disclosed in the notes or in the body of a companys financial statements. 6.No; changing the inventory method each period would violate the accounting concept of consistency. 7.No; the consistency concept does not preclude changes in accounting methods from ever being made. Instead,

6、a change from one acceptable method to another is allowed if the company justifies the change as an improvement in financial reporting. 8.Many people make important business decisions based on period-to-period fluctuations in a companys financial numbers, including gross profit and net income. As su

7、ch, inventory errorswhich can substantially impact gross profit, net income, current assets, and cost of salesshould not be permitted to cause such fluctuations and impair business decisions. (Note: Since such errors are “self-correcting,” they will distort net income in only two consecutive account

8、ing periodsthe period of the error and the next period.) 9.An inventory error that causes an understatement (or overstatement) for net income in one accounting period, if not corrected, will cause an overstatement (or understatement) in the next. Since an understatement (overstatement) of one period

9、 offsets the overstatement (understatement) in the next, such errors are said to correct themselves.10. Market usually means replacement cost of inventory when applied in the LCM.11. The accounting constraint of conservatism guides preparers of accounting reports to select the less optimistic estima

10、te in uncertain situations where two estimates of amounts are about equally likely. Users of information must also be cognizant of the potential conservatism in accounting reports when making business decisions.12. Factors that contribute to inventory shrinkage are breakage, loss, deterioration, dec

11、ay, and theft.13.AAccounts that are used only in a periodic inventory system include Purchases, Purchase Discounts, Purchase Returns and Allowances, and Transportation-In.14. On March 3, 2007, inventory as a percent of current assets is ($ in millions):$4,028 / $9,081 = 44.4%.15. Cost of goods avail

12、able for sale equals ending inventory plus cost of sales. As of February 28, 2007, this is computed as ($ thousands):Ending Inventory of $1,636,507 + Cost of Sales of $9,501,438 = $11,137,94516. Cost of goods available for sale equals ending inventory plus cost of sales. As of December 31, 2006, thi

13、s is computed as ($ millions):Ending Inventory of $752.1 + Cost of Sales of $2,544.4 = $3,296.517. Merchandise inventory ($ millions) comprises 1.9% ($270 / $14,509) of Apples current assets as of September 30, 2006, and 1.6% ($165 / $10,300) of its current assets as of September 24, 2005.18.BFor in

14、terim reporting, companies can estimate costs of goods sold and ending inventory by either the retail inventory method or the gross profit method.QUICK STUDIESQuick Study 6-1 (25 minutes)a. FIFO Date Goods PurchasedCost of Goods SoldInventory Balance1/ 1320 $6.00= $1,9201/ 985 $6.40320 $6.00 85 $6.4

15、0= $2,4641/25110 $6.60320 $6.0085 $6.40 = $3,190110 $6.601/26320 $6.00 = $1,92045 $6.40 40 $6.40 = 256110 $6.60 = $1,014360 $2,176McGraw-Hill Companies, 2009Solutions Manual, Chapter 6331Quick Study 6-1concludedb. LIFODateGoods PurchasedCost of Goods SoldInventory Balance1/ 1320 $6.00= $1,9201/ 985

16、$6.40320 $6.0085 $6.40= $2,4641/25110 $6.60320 $6.0085 $6.40= $3,190110 $6.601/26110 $6.60 = $ 726155 $6.00= $ 93085 $6.40 = 544165 $6.00 = 990 360 $2,260c. Weighted AverageDateGoods PurchasedCost of Goods SoldInventory Balance1/ 1320 $6.00= $1,9201/ 985 $6.40320 $6.0085 $6.40= $2,464 (avg. cost is

17、$6.084*)1/25110 $6.60320 $6.0085 $6.40= $3,190110 $6.60 (avg. cost is $6.194*)1/26360 $6.194 = $2,230*155 $6.194= $ 960*roundedAlternate solution format(a) FIFO:110 $6.60 =$ 726 45 $6.40 = 288155$1,014Ending inventory cost(b) LIFO:155 $6.00 =$ 930Ending inventory cost(c) Weighted average:320 $6.00 =

18、$1,92085 $6.40 =544110 $6.60 = 726515$3,190Cost of goods available for sale $3,190/515 = $6.194 (rounded) weighted average cost per unit 155 units $6.194 = $ 960 Ending inventory cost (rounded)Quick Study 6-2 (10 minutes)Beginning inventory. 10 units $28$ 280Plus1st week purchase. 10 units $303002nd

19、 week purchase. 10 units $313103rd week purchase . 10 units $323204th week purchase. 10 units $34 340Units Available for sale. 50 unitsCost of Goods Available for Sale.$1,550Quick Study 6-3 (25 minutes)a. FIFO DateGoods PurchasedCost of Goods SoldInventory Balance12/ 710 $ 9 = $ 9010 $ 9 = $ 9012/14

20、20 $10 = $20010 $ 920 $10= $29012/15 10 $ 9 12 $10= $120 8 $10 = $17012/2115 $12 = $18012 $10_15 $12= $300$170b. LIFO DateGoods Purchased Cost of Goods SoldInventory Balance12/ 710 $ 9 = $ 90 10 $ 9= $ 9012/1420 $10 = $200 10 $ 9 20 $10 = $29012/1518 $10 = $180 10 $ 9 2 $10= $11012/2115 $12 = $180 1

21、0 $ 9 2 $10= $290_ 15 $12$180McGraw-Hill Companies, 2009Solutions Manual, Chapter 6333Quick Study 6-3 (concluded)c. Weighted Average d. Specific identification(3 units x $9) + (9 units x $10) + (15 units x $12) = $297. Quick Study 6-4 (10 minutes)1. FIFO2. Specific identification3. LIFO4. LIFO5. LIF

22、OQuick Study 6-5 (10 minutes)Units in ending inventoryUnits stored in basement .800unitsLess damaged (unsalable) units.(10)Plus units in transit.400Plus units on consignment . 100Total units in ending inventory. 1,290unitsDateGoods Purchased Cost of Goods SoldInventory Balance12/ 710 $ 9 = $ 9010 $

23、9 = $ 9012/1420 $10 = $20010 $ 9 20 $ 10= $290(avg cost is $9.667)12/1518 $9.667 =$17412 $9.667= $11612/21 15 $12 = $18012 $9.667_15 $ 12= $296$174(avg cost is $10.963)Quick Study 6-6 (10 minutes)1. The consignor is Jabar Company. The consignee is Chi Company. The consignor, Jabar Company, should in

24、clude any unsold and consigned goods in its inventory.2. Title will pass at “destination” which is Kwon Companys receiving dock. Liu should show the $750 in its inventory at year-end as Liu retains title until the goods reach Kwon Company.Quick Study 6-7 (10 minutes)Cost of inventory (estates conten

25、ts) Price .$75,000 Transportation-in .1,800 Insurance on shipment.300 Cleaning and refurbishing. 1,750 Total cost of inventory.$78,850Quick Study 6-8 (5 minutes) Cost.$17,500PlusTransportation-in.300Import duties.1,000Insurance . 250Inventory cost.$19,050 The $400 advertising cost and the $3,000 cos

26、t for sales staff salaries are included in operating expensesnot part of inventory costs. Those two costs are unnecessary to get the vehicle in a place and condition for sale.Quick Study 6-9 (20 minutes)Per UnitTotalTotalLCM applied toInventory ItemsUnitsCostMarketCostMarketItemsWholeMountain bikes

27、20$650$500$13,000$10,000$10,000Skateboards224004508,8009,9008,800Gliders40850790 34,000 31,600 31,600_$55,800$51,500$50,400$51,500a. LCM for inventory as a whole.$51,500b. LCM applied to each product .$50,400McGraw-Hill Companies, 2009Solutions Manual, Chapter 6335Quick Study 6-10 (15 minutes)a. Ove

28、rstates 2009 cost of goods sold.b. Understates 2009 gross profit.c. Understates 2009 net income.d. Overstates 2010 net income.e. The understated 2009 net income and the overstated 2010 net income combine to yield a correct total income for the two-year period.f. The 2009 error will not affect years

29、after 2010.Quick Study 6-11 (10 minutes)Inventory turnover= Cost of goods sold/Average merchandise inventory= $602,250 / ($75,075 + $89,925)/2 = 7.30 timesDays sales in inventory = Ending Inventory/Costs of goods sold x 365 = ($89,925 / $602,250) x 365 = 54.50 days Quick Study 6-12A (15 minutes)Endi

30、ng Cost ofInventoryGoods Solda. FIFO (45 x $6.40) + (110 x $6.60). $1,014 (320 x $6.00) + (40 x $6.40).$2,176b. LIFO (155 x $6.00). $ 930 (110 x $6.60) + (85 x $6.40) + (165 x $6.00).$2,260c. Weighted Average ($3,190/ 515 = $6.194* cost per unit) (155 x $6.194). $ 960* (360 x $6.194).$2,230* *rounde

31、dQuick Study 6-13A (15 minutes)Ending Cost ofInventoryGoods Solda. FIFO (12 x $10) + (15 x $12) . $300 (10 x $9) + (8 x $10) .$170b. LIFO (10 x $9) + (17 x $10) .$260 (15 x $12) + (3 x $10) .$210c. Weighted Average ($470 / 45 = $10.444 cost per unit)* (27 x $10.444).$282* (18 x $10.444).$188* *round

32、edd. Specific Identification (3 x $9) + (9 x $10) + (15 x $12).$297 (7 x $9) + (11 x $10) .$173Quick Study 6-14B (15 minutes)Goods available for sale Inventory, January 1.$230,000 Cost of goods purchased (net). 492,000 Goods available for sale (at cost).722,000Net sales at retail.$850,000Estimated c

33、ost of goods sold $850,000 x (1 - 37%).(535,500)Estimated September 5 inventory destroyed.$186,500McGraw-Hill Companies, 2009Solutions Manual, Chapter 6337EXERCISESExercise 6-1 (30 minutes)a. Specific identificationEnding inventory100 units from January 30, 80 units from January 20, and 45 units fro

34、m beginning inventoryEnding Cost of ComputationsInventoryGoods Sold(100 x $5.00) + (80 x $6.00) + (45 x $7.00). $1,295 $2,800 - $1,295 .$1,505b. Weighted average perpetualDateGoods Purchased Cost of Goods SoldInventory Balance1/ 1140 $7.000= $ 9801/10 90 $ 7.00 = $ 63050 $7.000= $ 3501/20220 $6.0050

35、 $7.000220 $6.000 = $1,670(avg. cost is $6.185)1/25145 $6.185 = $ 897*125 $6.185= $ 773*1/30100 $5.00_125 $6.185$1,527100 $5.000= $1,273(avg. cost is $5.658)*roundedc. FIFO PerpetualDateGoods PurchasedCost of Goods SoldInventory Balance1/ 1140 $7.00= $ 9801/10 90 $7.00 = $ 63050 $7.00= $ 3501/20220

36、$6.0050 $7.00220 $6.00 = $1,6701/25 50 $7.00 95 $6.00 = $ 920125 $6.00 = $ 750 1/30100 $5.00 _ 125 $6.00 $1,550100 $5.00 = $1,250Exercise 6-1 (Continued)d. LIFO PerpetualDateGoods PurchasedCost of Goods SoldInventory Balance1/ 1140 $7.00 = $ 9801/10 90 $7.00 = $ 63050 $7.00 = $ 3501/20220 $6.0050 $7

37、.00220 $6.00 = $1,6701/25 145 $6.00 = $ 87050 $7.0075 $6.00 = $ 8001/30100 $5.00_50 $7.00 $1,50075 $6.00 = $1,300100 $5.00Alternate Solution Format for FIFO and LIFO Perpetual Ending Cost of Computations Inventory Goods Soldc. FIFO (125 x $6.00) + (100 x $5.00) .$1,250 (90 x $7.00) + (50 x $7.00) +

38、(95 x $6.00).$1,550 d. LIFO (50 x $7.00) + (75 x $6.00) + (100 x $5.00).$1,300 (90 x $7.00) + (145 x $6.00) .$1.500Exercise 6-2 (20 minutes)LIBERTY COMPANYIncome StatementsFor Month Ended January 31Specific IdentificationWeighted AverageFIFO LIFOSales. $3,525$3,525$3,525$3,525 (235 units x $15 price

39、)Cost of goods sold. 1,505 1,527 1,550 1,500Gross profit.2,0201,9981,9752,025Expenses. 1,250 1,250 1,250 1,250Income before taxes.770748725775Income tax expense (30%). 231 224* 218* 233* Net income. $ 539$ 524$ 507 $ 542 * Rounded to nearest dollar. McGraw-Hill Companies, 2009Solutions Manual, Chapt

40、er 6339Exercise 6-2 (Concluded)1.LIFO method results in the highest net income of $542.2.Weighted average net income of $524 falls between the FIFO net income of $507 and the LIFO net income of $542.3.If costs were rising instead of falling, then the FIFO method would yield the highest net income. E

41、xercise 6-3 (30 minutes)a.FIFO PerpetualDateGoods PurchasedCost of Goods SoldInventory Balance1/ 1126 $ 8= $1,0081/10 113 $ 8 = $ 90413 $ 8= $ 1043/14315 $13 = $4,09513 $ 8315 $13= $4,1993/15 13 $ 8148 $13= $1,924 167 $13 = $ 2,2757/30250 $18 = $4,500148 $13250 $18= $6,42410/ 5 148 $13 230 $18 = $ 6

42、,06420 $18= $ 36010/26 50 $23 = $1,15020 $18_50 $23= $1,510 $9,243Exercise 6-3 (Concluded)a. LIFO PerpetualDateGoods Purchased Cost of Goods SoldInventory Balance1/ 1126 $ 8= $1,0081/10 113 $ 8 = $ 90413 $ 8= $ 1043/14315 $13 = $4,09513 $ 8315 $13= $4,1993/15 13 $ 8 180 $13 = $2,340135 $13= $1,8597/

43、30250 $18 = $4,50013 $ 8135 $13 = $6,359250 $1810/ 5250 $18 = $4,50013 $ 8128 $13 = 1,664 7 $13= $ 195 $6,16410/26 50 $23 = $1,15013 $ 87 $13= $1,345_50 $23 $9,408Alternate Solution FormatEnding Cost ofInventoryGoods Solda. FIFO (20 x $18) + (50 x $23) . $1,510 (113 x $8) + (13 x $8) + (167 x $13) +

44、 (148 x $13) + (230 x $18). $9,243b. LIFO (13 x $8) + (7 x $13) + (50 x $23). $1,345 (113 x $8) + (180 x $13) + (250 x $18) + (128 x $13) . $9,408FIFO Gross MarginSales revenue (671 units sold x $40 selling price).$26,840Less: FIFO cost of goods sold. 9,243Gross profit.$17,597LIFO Gross MarginSales

45、revenue (671 units sold x $40 selling price).$26,840Less: LIFO cost of goods sold. 9,408Gross profit.$17,432McGraw-Hill Companies, 2009Solutions Manual, Chapter 6341Exercise 6-4 (15 minutes)a. Specific identification methodCost of goods soldCost of goods available for sale.$10,753 Ending inventory u

46、nder specific identification 3/14 purchase ( 5 $13) .$ 65 7/30 purchase ( 15 $18). 270 10/26 purchase ( 50 $23). 1,150 Total ending inventory under specific identification. 1,485 Cost of goods sold under specific identification.$ 9,268b. Specific identification methodGross margin Sales revenue (671

47、units sold x $40 selling price).$26,840Less: Specific identification cost of goods sold. 9,268Gross profit.$17,572Exercise 6-5 (15 minutes)Per UnitTotalTotalLCM applied toInventory ItemsUnits CostMarketCostMarketProductsWholeHelmets .19$45$49$ 855$ 931$ 855Bats.127367876804804Shoes.3390862,9702,8382

48、,838Uniforms.373131 1,147 1,147 1,147 .$5,848$5,720$5,644$5,720a.Lower of cost or market of inventory as a whole = $5,720b.Lower of cost or market of inventory by product = $5,644Exercise 6-6 (25 minutes)1. Correct gross profit = $1,100,000 - $700,000 = $400,000 (for each year)2. Reported income fig

49、ures Year 2008Year 2009Year 2010Sales.$1,100,000$1,100,000$1,100,000Cost of goods soldBeginning inventory.$280,000$262,000$280,000Cost of purchases. 700,000 700,000 700,000Good available for sale.980,000962,000980,000Ending inventory. 262,000 280,000 280,000Cost of goods sold. 718,000 682,000 700,00

50、0Gross profit.$ 382,000$ 418,000$ 400,000Exercise 6-7 (20 minutes)2008 Inventory turnover 2008 Days Sales in Inventory$442,104/($97,600 + $87,840)/2$87,840/$442,104 x 365 days = 72.5 days = 4.8 times 2009 Inventory turnover 2009 Days Sales in Inventory$667,134/($87,840 + $92,232)/2 = 7.4 times$92,23

51、2/$667,134 x 365 days = 50.5 daysAnalysis comment: It appears that during a period of increasing sales, Palmer has been efficient in controlling its amount of inventory. Specifically, inventory turnover increased by 2.6 times (7.4 - 4.8) from 2008 to 2009. In addition, days sales in inventory decrea

52、sed by 22 days (72.5 50.5).McGraw-Hill Companies, 2009Solutions Manual, Chapter 6343Exercise 6-8 (20 minutes)1. a. LIFO ratio computationsLIFO current ratio (2009) = $250/$225 = 1.1LIFO inventory turnover (2009) = $760/ ($177+$110)/2 = 5.3LIFO days sales in inventory (2009) = ($110/$760) x 365 = 52.

53、8 daysb. FIFO ratio computationsFIFO current ratio (2009) = $410*/$225 = 1.8FIFO inventory turnover (2009) = $680/ ($457+$270)/2 = 1.9FIFO days sales in inventory (2009) = ($270/$680) x 365 = 144.9 days*$250 + ($270 - $110)2. The use of LIFO versus FIFO for Cook markedly impacts the ratios computed.

54、 Specifically, LIFO makes Cook appear worse in comparison to FIFO numbers on the current ratio (1.1 vs. 1.8) but better on inventory turnover (5.3 vs. 1.9) and days sales in inventory (52.8 vs. 144.9). These results can be generalized. That is, when costs are rising and quantities are stable or risi

55、ng, the FIFO inventory exceeds LIFO inventory. This suggests that (relative to FIFO) the LIFO current ratio is understated, the LIFO inventory turnover is overstated, and the days sales in inventory is understated. Overall, users prefer the FIFO numbers for these ratios because they are considered m

56、ore representative of current replacement costs for inventory.Exercise 6-9A (20 minutes)Ending Cost ofInventoryGoods Solda. Specific Identification(100 x $5.00) + (80 x $6.00) + (45 x $7). $1,295$2,800 - $1,295 .$1,505b. Weighted Average($2,800 / 460 units = $6.087* average cost per unit)225 x $6.08

57、7. $1,370*235 x $6.087.$1,430*c. FIFO(100 x $5.00) + (125 x $6.00). $1,250(140 x $7.00) + (95 x $6.00).$1,550d. LIFO(140 x $7.00) + (85 x $6.00). $1,490(100 x $5.00) + (135 x $6.00).$1,310 *roundedMcGraw-Hill Companies, 2009Solutions Manual, Chapter 6345Exercise 6-10A (20 minutes)Cost of goods avail

58、able for sale = $10,753 (given in Exercise 6-3)Ending Cost ofInventory Goods Solda. FIFO(50 x $23) + (20 x $18).$1,510(126 x $8) + (315 x $13) + (230 x $18) .$ 9,243b. LIFO(70 x $8) .$ 560(50 x $23) + (250 x $18) + (315 x $13) + (56 x $8).$10,193c.FIFO Gross MarginSales revenue (671 units sold x $40

59、 selling price) . $26,840Less: FIFO cost of goods sold . 9,243Gross margin. $17,597LIFO Gross MarginSales revenue (671 units sold x $40 selling price) . $26,840Less: LIFO cost of goods sold . 10,193Gross margin. $16,647Exercise 6-11A (20 minutes)EndingInventoryCost ofGoods Solda. Specific identifica

60、tion (135 x $2.70) + (135 x $2.60) + (135 x $2.30) .$1,026 $8,976 - $1,026 .$7,950b. Weighted average ($8,976/3,780 = $2.375*) 405 x $2.375.962* $8,976 - $962 .8,014*c. FIFO (390 x $2.70) + (15 x $2.60) .1,092 (270 x $1.90) + (540 x $2.05) + (1,350 x $2.30) + (1,215 x $2.60).7,884d. LIFO (270 x $1.9