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SOLUTIONS TO PROBLEM SET A 35 Minutes, Medium PROBLEM 8.1A BASSTRACK a. General Journal 2007 (1) Specific identification method: Jan 15 Cost of Goods Sold 30,500 Inventory 30,500 To record cost of 1,000 Ace-5 reels sold to Anglers Warehouse: 500 units @ $29; 500 units @$32. (2) Average-cost method: Jan 15 Cost of Goods Sold 30,800 Inventory 30,800 To record cost of 1,000 Ace-5 reels sold to Anglers Exercises Warehouse by the average-cost method: 1,000 units @$30.80 ($46,200 total cost, divided by 1,500 units). (3) First-in, First-out (FIFO) method: Jan 15 Cost of Goods Sold 30,200 Inventory 30,200 To record cost of 1,000 Ace-5 reels sold to Anglers Warehouse. Cost determined by the FIFO flow assumption: 600 units @$29, plus 400 units @ $32 = $30,200. (4) Last-in, First-out (LIFO) method: Jan 15 Cost of Goods Sold 31,700 Inventory 31,700 To record cost of 1,000 Ace-5 reels sold to Anglers Warehouse. Cost determined by the LIFO flow assumption: 900 units @$32, plus 100 units @ $29 = $31,700. b. Inventory subsidiary ledger records: PROBLEM 8.1A (1) Specific identification method: BASSTRACK (continued) PURCHASED SOLD BALANCE Unit Unit Cost of Unit Date Units Cost Total Units Cost Goods Sold Units Cost Balance Dec 12 600 $ 29 $ 17,400 600 $ 29 $ 17,400 Jan 09 900 32
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