06第6章答案-會(huì)計(jì)學(xué)資料文檔

SOLUTIONSTOCH6EXERCISE6-4FIFOEndingInventoryCostofGoodsSoldDateUnitsUnitCost9/2617$105TotalCost$1,785Costofgoodsavailableforsale$14,442Less:Endinginventory1,785Costofgoodssold$12,657LIFOEndingInventoryCostofGoodsSoldDateDateDateUnitsUnitTotal9/117CostCost$97$1,649Costofgoodsavailableforsale$14,442DateUnitsUnitTotal9/117CostCost$97$1,649Costofgoodsavailableforsale$14,442Less:Endinginventory1,649Costofgoodssold$12,793Thecostofgoodsavailableforsaleisthesameundereachofthetowinventorycostflowmethods.Buttheendinginventoryisdifferentineachmethod,andthisdifferenceaffectscostofgoodssold.Inaperiodofrisingprices,FIFOproduceshigherendinginventoryandlowercostofgoodsold.UnderLIFO,theendinginventoryislowerandcostofgoodsoldishiger.EXERCISE6-10HornerWatchCompanyIncomeStatement20xx20xxCorrectCorrectSales$210,000$250,000CostofgoodssoldBeginningInventory32,00041,000Costofgoodspurchased173,000202,000Costofgoodsavailableforsale205,000243,000

41,00052,000164,00041,00052,000164,000191,000$46,000$59,000$105,000GrossprofitThetotalcombinedgrossprofitforthe2yearsNotethatoverstatingendinginventoryin20xxoverstatedbeginninginventoryin20xxandunderstatedgrossprofitin20xx.Overthetwoyears,totalgrossprofitiscorrect.Theerrorsoffsetonanother.Noticethatfor20xxand20xxtotalgrossprofitusingincorrectdatais$105,000($493000+$56,000).Thisisthesameasthetotalgrossprofitof$105,000($463000+$593000)usingcorrectdata.(C)Dearsir,WefoundthattheendinginventoryatDecember31,20xx,wasoverstated$3000,soastooverstategrossprofitin20xx,overstatebeginninginventoryin20xxandunderstategrossprofitin20xx.Overthetwoyears,totalgrossprofitiscorrect.Theerrorsoffsetonanother.Noticethatfor20xxand20xxtotalgrossprofitusingincorrectdatais$105,000($49,000+$56,000).Thisisthesameasthetotalgrossprofitof$105,000($46,000+$59,000)usingcorrectdata.Theeffectofoverstatingtheendinginventoryin20xxwasthattotalassetsin20xxwouldoverstateandthetotalstockholder'sequitywouldoverstate.In20xx,theerrorwasnotcorrected,totalgrossprofitforthetowperiodswouldbecorrect.Thus,totalstockholder'sequityreportedonthebalancesheetatDecember31,20xxwillbecorrected.YourfaithfullyEXERCISE6-11EXERCISE6-11SalesCostofgoodssoldGrossprofitEXERCISE6-11SalesCostofgoodssoldGrossprofit20xx$1,200,000EXERCISE6-11SalesCostofgoodssoldGrossprofit20xx$1,200,000850,000$350,00020xx$1,600,0001,120,000$480,00020xx$1,900,0001,200,000$700,000BeginningInventoryEndinginventoryAverageInventoryBeginningInventoryEndinginventoryAverageInventory20xx$100,000300,000$200,00020xx$300,000400,000$350,00020xx$400,000480,000BeginningInventoryEndinginventoryAverageInventory20xx$100,000300,000$200,00020xx$300,000400,000$350,00020xx$400,000480,000$440,000GrossProfit20xx$350,00020xx$480,00020xx$700,000■NetSales=?$1,200,000=?$1,600,000=?$1,900,000=GrossProfit

Rate29.2%30.0%36.8%CostofGoods

Sold20xx$850,00020xx$1,120,00020xx$1,200,00020xx20xx20xx365365365365Average_Inventory"+$200,000=?$350,000=?$480,000=Inventory.=Turnoverr4.25=r3.20=2.50=InventoryTurnover4.25times3.20times2.50timesDaysin

Inventory86days

114days

146daysAlthough,grossprofitrateincreased,theinventorylevelbecamehigherandinventoryturnoverdecreased.Thatmightincurhighcarryingcosts.Inventoryturnoverbecamelowermightleadtoliquidityvariation.PROBLEM6-4A⑻FIFO

EndingInventoryDateUnitsUnitCostTotalCostQ415000$2.65$39,750UFO

EndingInventoryDateUnitsUnitCostTotalCost-10000$2.28$22,800Q150002.3011,500Total15000$34,300

RedRobinInc.

CondensedIncomeStatements

FIFORedRobinInc.

CondensedIncomeStatements

FIFORedRobinInc.

CondensedIncomeStatements

FIFOSalesBeginningInventoryPurchasesCostofgoodsavailableforsaleEndinginventoryCostofgoodssoldRedRobinInc.

CondensedIncomeStatements

FIFOSalesBeginningInventoryPurchasesCostofgoodsavailableforsaleEndinginventoryCostofgoodssoldGrossprofitOperatingexpenseIncomebeforeincometaxIncometaxexpense(32%)Netincome$865,00022,800578,500601,30039,750561,550303,450147,000156,45050,064$106,386LIFO$865,00022,800578,500601,30034,300567,000298,000147,000151,00048,320$102,680FIFOproducesthemoremeaningfulinventoryamountforthebalancesheet.UnderFIFO,theendinginventoryishigher($39,750).FIFOproducesthemoremeaningfulnetincome.UnderFIFO,netincomeishigher($106,386).FIFOismorelikelytoapproximatetheactualphysicalflowofgoods.TheFIFOmethodassumesthattheearliestgoodspurchasedarethefirsttobesold.FIFOoftenparallelstheactualphysicalflowofmerchandisebecauseitgenerallyisgoodbusinesspracticetoselltheearliestunitsfirst.UnderLIFO,thereis$1,744morewillbeavailableformanagement.LIFOresultsinthelowerincometaxesduringtimesofrisingprices.ThelowernetincomereportedbyLIFOtranslatestoalowertaxexpense.Thetaxsavingof$1,744makesmorecashavailableformanagemen