《Survey of accounting 2th会计学 Carl S.Warren》ch06.pptVIP

$ 3,800 2,700 4,650 3,920 Total $15,520 $15,472 $15,070 Item X Units Cost May 10 Purchase 1 $ 9 18 Purchase 1 13 24 Purchase 1 14 Total 3 $36 Average cost per unit $12 Fifo Method Fifo Method Income Statement Sales $20 Cost of merchandise sold 9 Gross profit $11 Balance Sheet Merchandise inventory $27 $14 13 Effect of Inventory Costing Methods on Financial Statements Purchased goods Sold goods Lifo Method Lifo Method Item X Units Cost May 10 Purchase 1 $ 9 18 Purchase 1 13 24 Purchase 1 14 Total 3 $36 Average cost per unit $12 Lifo Method Income Statement Sales $20 Cost of merchandise sold 14 Gross profit $ 6 $13 9 Balance Sheet Merchandise inventory $22 Effect of Inventory Costing Methods on Financial Statements Purchased goods Sold goods Average Cost Method Item X Units Cost May 10 Purchase 1 $ 9 18 Purchase 1 13 24 Purchase 1 14 Total 3 $36 Average cost per unit $12 Average Cost Method Average Cost Method $12 12 Income Statement Sales $20 Cost of merchandise sold 12 Gross profit $ 8 Balance Sheet Merchandise inventory $24 Effect of Inventory Costing Methods on Financial Statements Compare and contrast the use of inventory costing methods. 6 Learning Objective First-In, First-Out Net sales $15,000 Cost of merchandise sold: Beginning inventory $ 1,800 Purchases 8,600 Merchandise available for sale $10,400 Less ending inventory 3,400 Cost of merchandise sold 7,000 Gross profit $ 8,000 Average Cost Net sales $15,000 Cost of merchandise sold: Beginning inventory $ 1,800 Purchases 8,600 Merchandise available for sale $10,400 Less ending inventory 3,120 Cost of merchandise sold 7,280 Gross profit $ 7,720 Last-In, First-Out Net sales $15,000 Cost of merchandise sold: Beginning inventory $ 1,800 Purchases 8,