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Gross Profit Ending Inventory

a. First-in, First Out (FIFO) 35.000 (90.000 - 55.000) 119.000 (57.000 + 62.000)
b. Weight Average Cost 33.000 (90.000 - 57.000) 114.000 (57.000 x 2)

PE 7-2A
a. Cost of Merchandise Sold on January 25
35 units x Rp100.000 = Rp3.500.000
b. The Inventory on January 31
60 - 35 + 50 - 48 = 27
27 units x Rp110.000 = Rp2.970.000

PE 7-3B
a. Weight average unit cost
125 units at Rp8.000 = (Rp 1.000.000)
375 units at Rp10.000 = (Rp 3.750.000)
(Rp 4.750.000)
b. Cost of merchandise sold
Rp4.750.000 : 500 = (Rp 9.500)
280 x Rp9.500 = (Rp 2.660.000)
c. The inventory on October 31
300 - 175 + 375 -380 = 220 unit
220 unit x Rp9.500 = (Rp 2.090.000)

PE 7-4A
a. FIFO method
14 units x Rp6.480.000 = (Rp 89.600.000)
b. The weight average cost method
Rp270.000.000 : 45 units = (Rp 6.000.000)
45 units x Rp6.000.000 = (Rp 84.000.000)

PE 7-5A
Total
Item Inventory Quantity Cost per unit Realizable Value Cost Market LCNRV
Raven 10 1200 (Rp 115.000) (Rp 112.000) (Rp 138.000.000) (Rp 134.400.000) (Rp 138.000.000)
Dove 23 6500 (Rp 17.000) (Rp 22.000) (Rp 110.500.000) (Rp 143.000.000) (Rp 143.000.000)
Total (Rp 248.500.000) (Rp 277.400.000) (Rp 281.000.000)

EX 7-7
Purchase Cost of Merchandise Sold Inventory
Date
Quantity Unit Cost Total Cost Quantity Unit Total Quantity Unit Cost Total Cost
Jan-01 4000 (Rp 20.000) (Rp 80.000.000)
Apr-19 2500 (Rp 20.000) (Rp 50.000.000) 1500 (Rp 20.000) (Rp 30.000.000)
june 30 6000 (Rp 24.000) (Rp 144.000.000) 7500 (Rp 22.000) (Rp 165.000.000)

Sep-02 4500 (Rp 22.000) (Rp 99.000.000) 3000 (Rp 22.000) (Rp 66.000.000)

20-Okt 1000 (Rp 25.000) (Rp 25.000.000) 4000 (Rp 23.500) (Rp 94.000.000)

Total (Rp 149.000.000) (Rp 94.000.000)

EX 7-8
Purchase Cost of Merchandise Sold Inventory
Date
Quantity Unit Cost Total Cost Quantity Unit Total Quantity Unit cost Total Cost
Jan-01 4000 (Rp 20.000) (Rp 80.000.000)
Apr-19 2500 (Rp 20.000) (Rp 50.000.000) 1500 (Rp 20.000) (Rp 30.000.000)
30-Jun 6000 (Rp 24.000) (Rp 144.000.000) 1500 (Rp 20.000) (Rp 30.000.000)
6000 (Rp 24.000) (Rp 144.000.000)
Sep-02 1500 (Rp 20.000) (Rp 30.000.000)
3000 (Rp 24.000) (Rp 72.000.000) 3000 (Rp 24.000) (Rp 72.000.000)
20-Okt 1000 (Rp 25.000) (Rp 25.000.000) 3000 (Rp 24.000) (Rp 72.000.000)
1000 (Rp 25.000) (Rp 25.000.000)
Total (Rp 152.000.000) (Rp 97.000.000)

EX 7-11
a 1 FIFO inventory = WA inventory
2 FIFO cost of good sold > WA cost of good sold
3 FIFO net income > WA net income
4 FIFO income taxes > WA income taxes
b
because WA will make taxes lower

EX 7-12
Inventory Cost per Market Value per Unit Total
Commodity
Quantity Unit (Net Realizable Value) Cost Market NRV
Ash 80 (Rp 140.000) (Rp 125.000) (Rp 11.200.000) (Rp 10.000.000) (Rp 10.000.000)
Aspen 120 (Rp 90.000) (Rp 112.000) (Rp 10.800.000) (Rp 13.440.000) (Rp 10.800.000)
Beech 30 (Rp 75.000) (Rp 74.000) (Rp 2.250.000) (Rp 2.220.000) (Rp 2.220.000)
Maple 75 (Rp 88.000) (Rp 86.000) (Rp 6.600.000) (Rp 6.450.000) (Rp 6.450.000)
Oak 60 (Rp 140.000) (Rp 145.000) (Rp 8.400.000) (Rp 8.700.000) (Rp 8.400.000)
Total (Rp 39.250.000) (Rp 40.810.000) (Rp 37.870.000)