The following info regarding inv. Transaction is available for the month of July
ID: 2348105 • Letter: T
Question
The following info regarding inv. Transaction is available for the month of July :Date type of inv #units unit cost total cost
Jul 1 beginning inv 180 $8 $1,440
July5 Purchase 75 $9 $675
July9 Sale 80
July 12 Sale 45
Jul17 purchase 140 $10 $1,440
Jul 26 sale 75
July 29 Purchase 40 $11 $440
A. What is the cost of goods sold under FIFO?
B. What is ending inventory under FIFO ?
C. What is cost of goods sold under LIFO ?
D. What is ending inventory under LIFO?
E. What is cost of goods sold under the weighted average method?
F. What is the ending inventory under weighted average method ?
Explanation / Answer
( the order I listed is Date, Unit Sales, COGS per unit, total cost) A. July 9, 80, $8, $640 July 12, 45, $8, $360 July 26, 55, $8, $440 July 26, 20, $9, $180 Total COGS= 1620. B. Beginning inventory + Purchase Inventory = 1440+675+1440+440 = 3995 Ending Inventory = 3995 - COGS = 2375 C. July 9, 75, $9, $675 July 9, 5, $8, $40 July 12, 45, $8, $360 July 26, 75, $10, $750 COGS = $1825 D. Ending Inventory = $2170 E.Total Inventory unit on hand + purchased = 180+75+140+40=435 Total unit sell = 80+45+75=200 Average cost per unit = 3995/435 = $9.18 Total COGS=$9.18*200=$1836.78 F. Ending Inventory = $3995-$1836.78 = $2158.22
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