BA220 Financial Accounting Week 4 Solution

This document provides the answer key for exercises from Week 4 of the BA220 Financial Accounting course. It includes detailed solutions for exercises 5-1A through 5-5A, covering topics such as inventory costing methods (FIFO, LIFO, and weighted average), cost of goods sold calculations, and journal entries. The solutions are presented in a clear and organized manner, making it easy for students to understand the concepts and apply them to similar problems.

BA220 Financial Accounting
Week 4
Answer Key
Textbook: 9th Edition
EXERCISE 5-1A
a.
b.
c.
d.
e.
EXERCISE 5-2A
Jones Co.
(a) (b) (c)
FIFO LIFO W. AVG.
Cost of Goods Sold
Ending Inventory
EXERCISE 5-3A
The Cortez Company Inventory Purchases
@ =
@ =
@ =
Page 1 of 10

Goods Available for
Sale
$
a.
Cost of Goods Sold:
FIFO Unit
s
Unit
Cost
Cost of Goods
Sold
@ =
@ =
@ =
Ending Inventory:
FIFO Unit
s
Unit
Cost
Ending
Inventory
@ =
b. Cost of Goods Sold
LIFO Unit
s
Unit
Cost
Cost of Goods
Sold
@ =
@ =
Ending Inventory
LIFO Unit
s
Unit
Cost
Ending
Inventory
@ =
@ =
c.
Weighted Average:
 =
 =
@ =
@ =
Page 2 of 10

EXERCISE 5-4A
a. (1) Mason Company
FIFO
Cost of Goods Sold:
=
=
Gross Margin $17,10
0
a. (2)
LIFO
=
=
a. (3)
Weighted Average
Page 3 of 10

EXERCISE 5-4A (cont.)
b.
FIFO LIFO
Weighted
Avg.
c.
Ending Inventory
*rounded to the nearest whole dollar.
EXERCISE 5-5A
The Shirt Shop
Summary of Purchase Transactions
@
@
@
@
a. (1)
FIFO Units Unit
Cost
Total
Page 4 of 10

@
@
a. (2)
LIFO Units Unit
Cost
Total
@
a. (3)
Weighted Average
 =
 =
Page 5 of 10

EXERCISE 5-5A (cont.)
b.
Note: The purchase entries are the same for all three
methods.
The Shirt Shop
General Journal
Date Account Title Debit Credit
(1) FIFO Sales and Cost of Goods Sold
(2) LIFO Sales and Cost of Goods Sold
(3) Weighted Average Sales and Cost of Goods Sold
Page 6 of 10

Page 7 of 10

EXERCISE 5-5A b. (cont.)
(1) FIFO
(2) LIFO
Page 8 of 10

EXERCISE 5-5A b. (cont.)
(3) Weighted Average
Page 9 of 10

EXERCISE 5-5A (cont.)
c.
FIFO
LIFO
Page 10 of 10