TUGAS AKUNTANSI KEUNGAN

Chapter 8 & 9

Exercise 8-8 "Purchase Recorded, Gross Method"

Ohno Industries purchased ¥ 12,000 of merchandise on February 1, 2015, subject to a trade discount of 1
and with credit terms of 3/15, n/60. It returned ¥ 3,000 (gross price before trade or cash discount) on
February 4. The invoice was paid on February 13. (All amounts in thousands)

Instructions :
(a) Assuming that Ohno uses the perpetual method for recording merchandise transactions, record the
purchase, return, and payment using the gross method.

Purchased ¥ 12,000 of merchandise on February 1, 2015 with trade discount of 10%, terms 3/15, n/60
Feb 1. Inventory
Accounts payable
{¥ 12,000 - (¥12,000 x 10%)}

Returned ¥ 3,000 (gross price before trade or cash discount)

Feb 4. Accounts payable
Inventory
{¥3,000 - (¥3,000 x 10%)}

Invoice was paid within discount period

Feb 13. Accounts payable (¥10,800 - ¥2,700)
Inventory (3% x ¥8,100)
Cash

(b) Assuming that Ohno uses the periodic method for recording merchandise transactions, record the
purchase, return, and payment using the gross method.

Purchased ¥ 12,000 of merchandise on February 1, 2015 with discount of 10%, terms 3/15, n/60
Feb 1. Purchases
Accounts payable
{¥ 12,000 - (¥12,000 x 10%)}

Returned ¥ 3,000 (gross price before trade or cash discount)

Feb 4. Accounts payable
Purchase returns and allowances
{¥3,000 - (¥3,000 x 10%)}

Invoice was paid within discount period

Feb 13. Accounts payable (¥10,800 - ¥2,700)
Purchase discounts (3% x ¥8,100)
 Cash

(c) At what amount would the purchase February 1 be recorded if the net method were used?
Purchase price ¥ 12,000
Less: trade discount (10% x ¥ 12,000) (1,200)
Less: cash discount (3% x ¥ 10,800) (324)
Net price ¥ 10,476
Recorded, Gross Method"
subject to a trade discount of 10%
trade or cash discount) on
s)

dise transactions, record the

count of 10%, terms 3/15, n/60

¥ 10,800 -
- ¥ 10,800

¥2,700 -
- ¥2,700

¥8,100 -
- ¥243
- ¥7,857

ise transactions, record the

of 10%, terms 3/15, n/60

¥ 10,800 -
- ¥ 10,800

¥2,700 -
- ¥2,700

¥8,100 -
- ¥243
 - ¥7,857

method were used?

Exercise 8-18 FIFO, LIFO, and Average - Cost Determination

Keyser Company’s record of transactions for the month of April is shown below :

Purchases
April 1 (balance on hand) 600 @ $6.00 April
4 1,500 @ $6.08
8 800 @ $6.40
13 1,200 @ $6.50
21 700 @ $6.60
29 500 @ $6.79
5,300

Instructions :
A. Assuming that periodic inventory record are kept, compute the inventory at April 30 using LIFO & Average
1. LIFO
Date of Invoice No. Units Unit Cost Total Cost

April 1 600 $6.00 $3,600

4 200 $6.08 $1,216
Ending Inventory $4,816

2. AVERAGE COST
Date of Invoice No. Units Unit Cost Total Cost

April 1 600 $6.00 $3,600

4 1,500 $6.08 $9,120
8 800 $6.40 $5,120
13 1,200 $6.50 $7,800
21 700 $6.60 $4,620
29 500 $6.79 $3,395
Ending Inventory $33,655

Weighted Average Cost Per Unit = Total Cost =

Total Units
Inventory in units = 5,300 - 4,500 = 800
Ending inventory = 800 x $6,35 = $5,080

B.
Assuming that perpetual inventory records are kept in both units and dollars, determine the inventory at
1. FIFO
Date Purchased Sold
$3,600
April 1
April 1
600 @ $6.00
$1,500
3
500 @ $10.00
$9,120
4
1,500 @ $6.08

$5,120
8
800 @ $6.08
$7,896
9 100 @ $6.00
1,200 @ $6.08
$3,744
11 300 @ $6.08
300 @ $6.40
$7,800
13
1,200 @ $6.50

$4,620
21
700 @ $6.60
$7,750
23 500 @ $6.40
700 @ $6.50
$7,750
27 500 @ $6.50
400 @ $6.60
$3,395
29
500 @ $6.79

Ending Inventory = $5,375

2. LIFO
Date Purchased Sold
$3,600
April 1
600 @ $6.00
$1,500
3
500 @ $10.00
$9,120
4
1,500 @ $6.08

$5,120
8
800 @ $6.08
$8,160
9 800 @ $6.40
500 @ $6.08
$3,648
11
 11
600 @ $6.08
$7,800
13
1,200 @ $6.50

$4,620
21
700 @ $6.60

$7,870
23 700 @ $6.60
500 @ $6.50
$5,766
27 700 @ $6.50
200 @ $6.08
$3,395
29
500 @ $6.79

Ending Inventory = $5,211

C. Compute cost of goods sold assuming periodic inventory procedures and inventory priceat FIFO.
Cost of goods available to sale
(600 x $6.00) + (1500 x $6.08) + (800 x $6.40) + (1200 x $6.50) + (900 x $6.60) + (500
x $6.79)
Less inventory (FIFO)
Cost of goods sold

C. In an inflationary period, which inventory method - FIFO, LIFO, or Average Cost will show the highest net i
FIFO will show the highest income in an inflationary period.

FIFO LIFO

Sales $48,600 $48,600

Cost of goods sold ($28,200) ($28,839)
Gross profit $20,400 $20,361

Sales = (500 x $10) + (1300 x $10) + (600 x $11) + (1200 x $11) + (800 x $12) = $48,600

Cost of goods sold =

AVERAGE
LIFO COST
Cost of goods sold for sale $33,655 $33,655
Less - Ending Inventory ($4,816) ($5,080)
Gross profit $28,839 $28,575
t Determination

Sales
3 (balance on hand) 500 @ $10.00
9 1,300 @ $10.00
11 600 @ $11.00
23 1,200 @ $11.00
27 900 @ $12.00
4,500

t April 30 using LIFO & Average Cost!

$33,655 = $6,35
5,300

rs, determine the inventory at April 30 using (1) FIFO and (2) LIFO

Balance

600 @ $6.00 $3,600

 600 @ $6.00 $3,600

100 @ $6.00 $600

100 @ $6.00
$9,720
1,500 @ $6.08
100 @ $6.00
1,500 @ $6.08 $14,840
800 @ $6.40
300 @ $6.08
$6,994
800 @ $6.40

500 @ $6.40 $3,200

500 @ $6.40
$11,000
1,200 @ $6.50
500 @ $6.40
1,200 @ $6.50 $15,620
700 @ $6.60
500 @ $6.50
$7,870
700 @ $6.60

300 @ $6.60 $1,980

300 @ $6.60
$5,375
500 @ $6.79

Balance

600 @ $6.00 $3,600

100 @ $6.00 $600

100 @ $6.00
$9,720
1,500 @ $6.08
100 @ $6.00
1,500 @ $6.08 $14,840
800 @ $6.40
100 @ $6.00
$6,680
1,000 @ $6.08
100 @ $6.00
$3,032
 $3,032
400 @ $6.08
100 @ $6.00
400 @ $6.08 $10,832
1,200 @ $6.50
100 @ $6.00
400 @ $6.08
$15,452
1,200 @ $6.50
700 @ $6.60
100 @ $6.00
400 @ $6.08 $7,582
700 @ $6.50
100 @ $6.00
$1,816
200 @ $6.08
100 @ $6.00
200 @ $6.08 $5,211
500 @ $6.79

nventory priceat FIFO.

$33,655

($5,375)
$28,280

Cost will show the highest net income ?

AVERAGE
COST
$48,600
($28,575)
$20,025

0 x $12) = $48,600
 Exercise 9-21
Castlemania company lost most of its inventory in a fire in December just before the year end physical inv

Beginning Inventory 170,000

Purchase for the year 450,000
Purchase return (30,000)
Sales 650,000
Sales Return (24,000)
Rate of GPM on net sales 30%

Merchandise with selling price of 21,000 remained undamaged after the fire. Damage merchandise with

Compute the loss due to fire, no insurance coverage.

Answer
Purchase 450,000
Beg. Inventory 170,000
Purchase Return (30,000)
Goods for sale 590,000

Sales 650,000
Sales Return (24,000)
Net sales 626,000
Gross Profit (187,800)
COGS 438,200

Ending Inventory 151,800

Undamaged inventory (14,700)

(21,000 x 70%) It is still can be sold, to be transferred to beginnin
Damaged Inventory (5,300) of next period
(at NRV)

Loss on Inventory 131,800

 Gross Profit Method
efore the year end physical inventory was taken. The books disclosed:

re. Damage merchandise with an original selling price of 15,000 had NRV 5,300

d, to be transferred to beginning
of next period
 Exercise 9-21 Retail Inventory
Cost
Beginning Inventory €200,000
Purchase 1,425,000
Totals 1,625,000
Add: Net markups
Markups
Markups cancellations

Totals 1,625,000

Deduct: Net Markdowns

Markdowns
Markdowns cancellation

Sales price of goods available

deduct: Sales
Ending inventory at retail

Cost-to-retail ratio = 1,625,000 = 65%

€2,500,000

Ending inventory at cost = 65% X 220,000 = €143,000

Retail Inventory Method
Retail
€280,000
2,140,000
2,420,000

95,000
-15,000
80,000
2,500,000

35,000
-5,000
30,000
2,470,000
2,250,000
€220,000