P(6)-2(A)

Ganville Day Distribution

Cost Of Godds Available For Sale
Date Explanation Units Rate Amount
1-Mar Beginning inven. 1500 7 10500
5-Mar Purchase 300 8 24000
13-Mar Purchase 5500 9 49500
21-Mar Purchase 4000 10 40000
16-Mar Purchase 2000 11 22000
Total 16000 146000
(B) Fifo Method
Ending Inventory
Date Explanation Units Rate Amount
21-Mar Purchase 1500 10 15000
26-Mar Purchase 2000 11 22000
Total 3500 37000
Cost of goods sold=146000-37000=109000
Proof
Date Explanation Units Rate Amount
1-Mar Beginning Inv. 1500 7 10500
5-Mar Purchase 3000 8 24000
13-Mar Purchase 5500 9 49500
21-Mar Purchase 2500 10 25000
Total 12500 109000
Lifo Method
Ending Inventory
Date Explanation Units Rate Amount
1-Mar Beginning Inv. 1500 7 10500
5-Mar Purchase 2000 8 16000
Total 3500 26500
Cost of goods sold=146000-26500=119500
Proof
Date Explanation Units Rate Amount
26-Mar Purchase 2000 11 22000
21-Mar Purchase 4000 10 40000
13-Mar Purchase 5500 9 49500
5-Mar Purchase 1000 8 8000
Total 12500 119500
Average Cost Mathod
Ending Inventory
Date Explanation Units Rate Amount
31-Mar 146000+16000 3500 9125 31937.5
Total 3500 31937.5
Cost of goods sold=146000-31937.5=114062.5
Proof
Date Explanation Units Rate Amount
31-Mar 146000/16000 12500 9.125 114062.5
Total 12500 114062.5
P(6)-3(a)
Edding Company
Cost of goods available for sale
Date Expalanation Unit Rate Amount
1-Jan Beginning Inv. 400 8 3200
20-Feb Purchase 600 9 5400
15-May Purchase 500 10 5000
12-Aug Purchase 300 11 3300
8-Dec Purchase 200 12 2400
Total 2000 19300
(B) FIFO Method
Ending Inventory
Date Explanation Unit Rate Amount
12-Aug Purchase 300 11 3300
8-Dec Purchase 200 12 2400
Total 500 5700
Cost of goods sold=19300-5700=13600
Proof
Date Explanation Unit Rate Amount
1-Jan Beginning Inv. 400 8 3200
20-Feb Purchase 600 9 400
5-May Purchase 500 10 5000
Total 1500 13600
Lifo Method
Ending Inventory
Date Explanation Unit Rate Amount
1-Jan Beginning Inv. 400 8 3200
20-Feb Purchase 100 9 900
Total 500 4100
Cost of goods sold=19300-4100=15200
Proof
Date Explanation Unit Rate Amount
8-Dec Purchase 200 12 2400
12-Aug Purchase 300 11 3300
12-May Purchase 500 10 5000
20-Feb Purchase 500 9 4500
Total 1500 15200
Average Cost Method
Ending Inventory
Date Explanation Unit Rate Amount
1-Dec 19300+2000 500 9.65 4825
Total 500 4825
Cost of goods sold=19300-4825=14475
Proof
Date Explanation Unit Rate Amount
31-Dec 19300/2000 1500 9.25 14475
Total 1500 14475
P(6)-4(A)
Morals Co
Condencet Income Statement
For the year ended December 31,2008
Particulars Fifo Lifo
Sales 865000 865000
Less
Beginning inventory 32000 32000
Cost of goods purshased 595000 595000
Ending Inventory 84000 68000
Gross Profit 322000 306000
Less
Operating expence 147000 147000
Income from operation 175000 159000
Less
Income tax 59500 54060
Net Income 115500 115500
Ending inventory(FIFO)=3000*2.80=84000
Ending inventory(LIFO)=32000+(15000*2.40)=68000
(B) Monar Inc.
Condensed Income Statement
For the year ended December 31,2010
Particulars Fifo Lifo
Sales 747000 747000
Less
Beginning Inventory 16000 16000
Ending inventory 48600 38000
Gross Profit 311600 301000
Less
Operating expence 130000 130000
Income from operation 181600 171000
Less
Income tax 72640 68400
Net income 108960 102600
Income statement
Particulars Amount Amount
Sales 600000
Less:Cost of
goods sold
Beginning Inv. 32000
Purchase 377000
Less: returns and
allowence 13300
Less: discount 8500
Add:Freight in 8800
Cost of goods
available for sale 396000
Less:Ending Inv. 36000
Cost of goods
sold 364000
Gross profit 240000
Income Statement
Particulars Amount Amount
Sales 700000
Less:Estaimated
gross profit 280000
420000
Estimated cost
of goods sold
Beginning Inv. 32000
Purchase 424000
Less: purchase
return 14900
Less: purchase
discount 9500
Add:Friegt in 9900
Cost of goods
available for sale 445500
Cost of goods
available for sale 445500
Less:Estimated
Cost of goods
sold 420000
Ending inventory
lost in fair 25500