会计学原理FinancialAccountingbyRobertLibby第八版第七章答案Word文件下载.docx

1、4. Goods available for sale is the sum of the beginning inventory and the amount of goods purchased during the period. Cost of goods sold is the amount of goods available for sale less the ending inventory. 5. Beginning inventory is the stock of goods on hand （in inventory） at the start of the accou

2、nting period. Ending inventory is the stock of goods on hand （in inventory） at the end of the accounting period. The ending inventory of one period automatically becomes the beginning inventory of the next period. 6. （a） Average costThis inventory costing method in a periodic inventory system is bas

3、ed on a weighted-average cost for the entire period. At the end of the accounting period the average cost is computed by dividing the goods available for sale in units into the cost of goods available for sale in dollars. The computed unit cost then is used to determine the cost of goods sold for th

4、e period by multiplying the units sold by this average unit cost. Similarly, the ending inventory for the period is determined by multiplying this average unit cost by the number of units on hand. （b） FIFOThis inventory costing method views the first units purchased as the first units sold. Under th

5、is method cost of goods sold is costed at the oldest unit costs, and the ending inventory is costed at the newest unit costs. （c） LIFOThis inventory costing method assumes that the last units purchased are the first units sold. Under this method cost of goods sold is costed at the newest unit costs

6、and the ending inventory is costed at the oldest unit costs. （d） Specific identificationThis inventory costing method requires that each item in the beginning inventory and each item purchased during the period be identified specifically so that its unit cost can be determined by identifying the spe

7、cific item sold. This method usually requires that each item be marked, often with a code that indicates its cost. When it is sold, that unit cost is the cost of goods sold amount. It often is characterized as a pick-and-choose method. When the ending inventory is taken, the specific items on hand,

8、valued at the cost indicated on each of them, is the ending inventory amount.7. The specific identification method of inventory costing is subject to manipulation. Manipulation is possible because one can, at the time of each sale, select （pick and choose） from the shelf the item that has the highes

9、t or the lowest （or some other） unit cost with no particular rationale for the choice. The rationale may be that it is desired to influence, by arbitrary choice, both the amount of income and the amount of ending inventory to be reported on the financial statements. To illustrate, assume item A is s

10、tocked and three are on the shelf. One cost $100; the second one cost $115; and the third cost $125. Now assume that one unit is sold for $200. If it is assumed arbitrarily that the first unit is sold, the gross profit will be $100; if the second unit is selected, the gross profit will be $85; or al

11、ternatively, if the third unit is selected, the gross profit will be $75. Thus, the amount of gross profit （and income） will vary significantly depending upon which one of the three is selected arbitrarily from the shelf for this particular sale. This assumes that all three items are identical in ev

12、ery respect except for their unit costs. Of course, the selection of a different unit cost, in this case, also will influence the ending inventory for the two remaining items.8. LIFO and FIFO have opposite effects on the inventory amount reported under assets on the balance sheet. The ending invento

13、ry is based upon either the oldest unit cost or the newest unit cost, depending upon which method is used. Under FIFO, the ending inventory is costed at the newest unit costs, and under LIFO, the ending inventory is costed at the oldest unit costs. Therefore, when prices are rising, the ending inven

14、tory reported on the balance sheet will be higher under FIFO than under LIFO. Conversely, when prices are falling the ending inventory on the balance sheet will be higher under LIFO than under FIFO.9. LIFO versus FIFO will affect the income statement in two ways: （1） the amount of cost of goods sold

15、 and （2） income. When the prices are rising, FIFO will give a lower cost of goods sold amount and hence a higher income amount than will LIFO. In contrast, when prices are falling, FIFO will give a higher cost of goods sold amount and, as a result, a lower income amount.10. When prices are rising, L

16、IFO causes a lower taxable income than does FIFO. Therefore, when prices are rising, income tax is less under LIFO than FIFO. A lower tax bill saves cash （reduces cash outflow for income tax）. The total amount of cash saved is the difference between LIFO and FIFO inventory amounts multiplied by the

17、income tax rate.11. LCM is applied when market （defined as current replacement cost） is lower than the cost of units on hand. The ending inventory is valued at market （lower）, which （a） reduces net income and （b） reduces the inventory amount reported on the balance sheet. The effect of applying LCM

18、is to include the holding loss on the income statement （as a part of CGS） in the period in which the replacement cost drops below cost rather than in the period of actual sale.12. When a perpetual inventory system is used, the unit cost must be known for each item sold at the date of each sale becau

19、se at that time two things happen: （a） the units sold and their costs are removed from the perpetual inventory record and the new inventory balance is determined; （b） the cost of goods sold is determined from the perpetual inventory record and an entry in the accounts is made as a debit to Cost of G

20、oods Sold and a credit to Inventory. In contrast, when a periodic inventory system is used the unit cost need not be known at the date of each sale. In fact, the periodic system is designed so that cost of goods sold for each sale is not known at the time of sale. At the end of the period, under the

21、 periodic inventory system, cost of goods sold is determined by adding the beginning inventory to the total goods purchased for the period and subtracting from that total the ending inventory amount. The ending inventory amount is determined by means of a physical inventory count of the goods remain

22、ing on hand and with the units valued on a unit cost basis in accordance with the cost principle （by applying an appropriate inventory costing method）.ANSWERS TO MULTIPLE CHOICE1. c）2. d）3. a）4. a）5. c）6. c）7. a）8. c）9. c）10. a）Authors Recommended Solution Time（Time in minutes）Mini-exercisesExercise

23、sProblemsAlternate ProblemsCases and ProjectsNo.Time1202530403354154565078*9101112Continuing Case131416171819212522* Due to the nature of these cases and projects, it is very difficult to estimate the amount of time students will need to complete the assignment. As with any open-ended project, it is

24、 possible for students to devote a large amount of time to these assignments. While students often benefit from the extra effort, we find that some become frustrated by the perceived difficulty of the task. You can reduce student frustration and anxiety by making your expectations clear. For example

25、, when our goal is to sharpen research skills, we devote class time to discussing research strategies. When we want the students to focus on a real accounting issue, we offer suggestions about possible companies or industries. MINI-EXERCISESM71. Type of Business Type of Inventory Merchandising Manuf

26、acturing Work in process X Finished goods X Merchandise X Raw materials X M72.To record the purchase of 90 new shirts in accordance with the cost principle （perpetual inventory system）: Inventory （+A） 2,150 Cash （-A） 2,150Cost: $1,800 + $185 + $165 = $2,150.The $108 interest expense is not a proper cost of the mercha