1. COST ACCOUNTING 9TH EDITION
Chapter 7 Page 49
CHAPTER 7 EXERCISES
Exercises 1
Freight Allocated
on
Item Weight Cost Weight Cost
Pepto 450 1125 40.5 45
Lenco 600 1350 54 54
Bilco 750 1575 67.5 63
Total 1800 4050 162 162
Total freigh charges $ 162
Exercises 2
Store Ledger Card Under Average Costing Method
Date Received Issued Balance
Qty Rate Amount Qty Rate Amount Qty Rate Amount
01-Jan 500 1.2 600 500 1.2 600
06-Jan 200 1.25 250 700 1.2143 850
10-Jan 400 1.3 520 1100 1.2455 1370
15-Jan 560 1.245 697.5 540 1.2455 672.55
25-Jan 500 1.4 700 1040 1.3198 1372.5
27-Jan 400 1.32 527.9 640 1.3198 844.64
960 1225 640 844.64
Store Ledger Card Under FIFO Costing Method
Date Received Issued Balance
Qty Rate Amount Qty Rate Amount Qty Rate Amount
01-Jan 500 1.2 600 500 1.2 600
06-Jan 200 1.25 250 500 1.2 600
200 1.25 250
10-Jan 400 1.3 520 500 1.2 600
200 1.25 250
400 1.3 520
15-Jan 500 1.2 600 140 1.25 175
60 1.25 75 400 1.3 875
25-Jan 500 1.4 700 140 1.25 175
400 1.3 175
500 1.4 700
27-Jan 140 1.25 175 140 1.3 182
260 1.3 338 500 1.4 700
960 1188 640 882
Store Ledger Card Under LIFO Costing Method
Date Received Issued Balance
Qty Rate Amount Qty Rate Amount Qty Rate Amount
01-Jan 500 1.2 600 500 1.2 600
06-Jan 200 1.25 250 500 1.2 600
200 1.25 250
10-Jan 400 1.3 520 500 1.2 600
200 1.25 250
400 1.3 520
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2. COST ACCOUNTING 9TH EDITION
Chapter 7 Page 50
15-Jan 400 1.3 520 500 1.2 600
160 1.25 200 40 1.25 50
25-Jan 500 1.4 700 500 1.2 600
40 1.25 50
500 1.4 700
27-Jan 400 1.4 560 500 1.2 600
40 1.25 50
100 1.4 140
960 1280 640 790
Exercises 3
Store Ledger Card Under Average Costing Method
Date Received Issued Balance
Qty Rate Amount Qty Rate Amount Qty Rate Amount
01-Oct 700 5 3500 700 5 3500
03-Oct 400 5 2000 300 5 1500
04-Oct 300 5.2 1560 600 5.1 3060
08-Oct 300 5.2 1560 900 5.1333 4620
09-Oct 500 5.133 2566.67 400 5.1333 2053.33
11-Oct 300 5.133 1540 100 5.1333 513.333
13-Oct 1000 5.1 5100 1100 5.103 5613.33
21-Oct 400 5.5 2200 1500 5.2089 7813.33
23-Oct 600 5.209 3125.33 900 5.2089 4688
27-Oct 800 5.209 4167.11 100 5.2089 520.889
29-Oct 300 5.6 1680 400 5.5022 2200.89
2600 13399.1 400 2200.89
Store Ledger Card Under FIFO Costing Method
Date Received Issued Balance
Qty Rate Amount Qty Rate Amount Qty Rate Amount
01-Oct 700 5 3500 700 5 3500
03-Oct 400 5 2000 300 5 1500
04-Oct 300 5.2 1560 300 5 1500
300 5.2 1560
08-Oct 300 5.2 1560 300 5 1500
300 5.2 1560
300 5.2 1560
09-Oct 300 5 1500 100 5.2 520
200 5.2 1040 300 5.2 1560
11-Oct 100 5.2 520 100 5.2 520
200 5.2 1040
13-Oct 1000 5.1 5100 100 5.2 520
1000 5.1 5100
21-Oct 400 5.5 2200 100 5.2 520
1000 5.1 5100
400 5.5 2200
23-Oct 100 5.2 520 500 5.1 2550
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3. COST ACCOUNTING 9TH EDITION
Chapter 7 Page 51
500 5.1 2550 400 5.5 2200
27-Oct 500 5.1 2550 100 5.5 550
300 5.5 1650
29-Oct 300 5.6 1680 100 5.5 550
300 5.6 1680
2600 13370 400 2230
Store Ledger Card Under LIFO Costing Method
Date Received Issued Balance
Qty Rate Amount Qty Rate Amount Qty Rate Amount
01-Oct 700 5 3500 700 5 3500
03-Oct 400 5 2000 300 5 1500
04-Oct 300 5.2 1560 300 5 1500
300 5.2 1560
08-Oct 300 5.2 1560 300 5 1500
300 5.2 1560
300 5.2 1560
09-Oct 300 5.2 1560 300 5.2 1560
200 5.2 1040 100 5.2 520
11-Oct 100 5.2 520 100 5.2 520
200 5.2 1040
13-Oct 1000 5.1 5100 100 5.2 520
1000 5.1 5100
21-Oct 400 5.5 2200 100 5.2 520
1000 5.1 5100
400 5.5 2200
23-Oct 400 5.5 2200 100 5.2 520
200 5.1 1020 800 5.1 4080
27-Oct 800 5.1 4080 100 5.2 520
29-Oct 300 5.6 1680 100 5.2 520
300 5.6 1680
2600 13460 400 2200
Exercise 7.13
Normal Abnormal
1 W.I.P 60900 1 W.I.P 60000
D.M 24000 D.M 24000
Payroll 18000 Payroll 18000
FOH 18900 FOH 18000
2 FOH 2750 2
Spoiled
goods 2500
WIP 2750 WIP 2500
3 Spoiled goods 2500 3
Finished
Goods 58400
WIP 2500 WIP 58400
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4. COST ACCOUNTING 9TH EDITION
Chapter 7 Page 52
4 Finished Goods 55650
WIP 55650
55650 58400
Per Unit Cost=
5500
10.12
Per Unit
Cost= 5500
10.62
Exercise 7.14
Normal Abnormal
1 W.I.P 50000 1 W.I.P 48000
D.M 20000 D.M 20000
Payroll 16000 Payroll 16000
FOH 14000 FOH 12000
2 FOH 1650 2
Spoiled
goods 2100
WIP 1650 WIP 2100
3 Spoiled goods 2100 3
Finished
Goods 45900
WIP 2100 WIP 45900
4 Finished Goods 46250
WIP 46250
46250 45900
Per Unit Cost=
3700
12.50
Per Unit
Cost= 3700
12.41
Problem7.7
Normal Abnormal
1 W.I.P 96000 1 W.I.P 90400
D.M 40000 D.M 40000
Payroll 32000 Payroll 32000
FOH 24000 FOH 18400
2 FOH 4800 2 Spoiled goods 240
WIP 4800 WIP 240
3 Spoiled goods 2400 3 Finished Goods 90160
WIP 2400 WIP 90160
4 Finished Goods 88800
WIP 88800
88800 90160
Per Unit Cost=
7400
12.00 Per Unit Cost=
7400
12.18
49