Accounting Activity: Falcon's Fruit Stand 
Objective:
This lesson is a way to teach the abstract concept of Cost of Merchandise Sold in a more concrete format.
Supplies Needed:
3 snack Ziploc bags for each group
4 oz. Box of Runts for each group
Preliminary Planning:
Prior to the lesson, label and fill the bags as follows for each group

January 1 Inventory 

Various Runtsapprox. 2/3 of the box 

Purchases 

Various Runtsapprox. 1/3 of the box 

Merchandise Sold 

Empty 
Procedure:
Students move into groups of four and complete the work sheet below. The teacher facilitates each step as follows
Falcon's Fruit Stand Cost of Merchandise Sold 

January 1 Inventory 




Apples 


X 
$2 
= 


Oranges 

X 
$3 
= 


Strawberries 

X 
$5 
= 


Limes 

X 
$1 
= 


Bananas 

X 
$4 
= 



January 1 Inventory = 
$ 



Purchases 




Apples 


X 
$2 
= 


Oranges 

X 
$3 
= 


Strawberries 

X 
$5 
= 


Limes 

X 
$1 
= 


Bananas 

X 
$4 
= 



+ Purchases 
$ 

Total Cost of Merchandise Available for Sale (Inventory + Purchases) = $ 
Falcon's Fruit Stand Cost of Merchandise Sold 

December 31 Inventory 




Apples 


X 
$2 
= 


Oranges 

X 
$3 
= 


Strawberries 

X 
$5 
= 


Limes 

X 
$1 
= 


Bananas 

X 
$4 
= 



 December 31 Inventory = 
$ 

Total Cost of Merchandise Available for Sale  December 31 Inventory = $ 

Proof of Merchandise Sold 




Apples 


X 
$2 
= 


Oranges 

X 
$3 
= 


Strawberries 

X 
$5 
= 


Limes 

X 
$1 
= 


Bananas 

X 
$4 
= 



Cost of Merchandise Sold 
$ 

Do your amounts match???? 
This activity was presented by Dana Simpson West of Northwest High School at MBEA Conference Summer 2000