please explain how Saved Help S Unit ransactions Units Cost Beginning inventory,
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please explain how
Saved Help S Unit ransactions Units Cost Beginning inventory, January 1 Transactions during the year: a. Purchase, January 36 b. Sale, March 14 ($100 each) C. Purchase, May 1 d Sale, August 31 ($100 each) 2,20055 3,350 2,050 65 (1,850) 85 (2,300) Assuming that for Specific identification method (item td) the March 14 sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Assume that the sale of August 31 was selected from the remainder of the beginning inventory, with the balance from the purchase of May 1 Required 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round intermediate calculations to 2 decimal places and final answers to the nearest whole doller amount.) Amount of Goods Inventorny Goods ailable for Sale Ending Inventory Cost of Sold a. Last-in, first-out b. Weighted average cost C. First-in, first-out d Specific identification rey 5 Next > searchExplanation / Answer
CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER FIFO METHOD PURHASES COST OF GOODS SOLD CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost January , 01 Beginning inventory 2200 $55 121000 January , 30 Purchases 3350 $65 $2,17,750 2200 $55 121000 3350 $65 $2,17,750 March , 14 Sales 1850 $55 101750 350 $55 19250 3350 $65 $2,17,750 May , 01 Purchases 2050 $85 $1,74,250 350 $55 19250 3350 $65 $2,17,750 2050 $85 $1,74,250 August , 31 Sales 350 $55 19250 1950 $65 $1,26,750 1400 $65 $91,000 2050 $85 $1,74,250 5400 392000 4150 247750 3450 265250 Unit Amount COGS as per FIFO Method 4,150.00 $2,47,750.00 Ending inventory 3450 265250 CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER LIFO METHOD PURHASES COST OF GOODS SOLD CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost January , 01 Beginning inventory 2200 $55 121000 January , 30 Purchases 3350 $65 $2,17,750 2200 $55 121000 3350 $65 $2,17,750 March , 14 Sales 1850 $65 120250 2200 $55 121000 1500 $65 $97,500 May , 01 Purchases 2050 $85 $1,74,250 2200 $55 121000 1500 $65 $97,500 2050 $85 $1,74,250 August , 31 Sales 2050 $85 $1,74,250 250 $65 $16,250 2200 $55 121000 1250 $65 $81,250 5400 392000 4150 310750 3450 202250 CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER Weighted Average Method Unit Rate Amount Opening Inventory = 2,200 $55 121000 Purchase Jan, 30 3,350 $65 217750 Purchase May , 01 2,050 $85 174250 7,600 513000 Cost per unit = $ 513,000 / 7,600 Units 67.50 Closing inventory = 3,450 units X 67.50 = 2,32,875.00 CALCULATION OF ENDING INVENTORY AND COGS UNDER SPECIFIC IDENTIFICATION METHOD Units Rate Amount Cost of Goods Sold From inventory Mar, 14 = 3/5 th 880 $55 $ 48,400 From Purchase jan 30 = 3/5 th 2,010 $65 $ 1,30,650 Reminder from Aug ,31 1,260 $85 $ 1,07,100 4,150 $ 2,86,150 Ending inventory From inventory Mar, 14 = 2/5 th 1,320 $55 $ 72,600 From Purchase jan 30 = 3/5 th 1,340 $65 $ 87,100 Reminder from Aug ,31 790 $85 $ 67,150 3,450 $ 2,26,850 Amount of Goods Available for sale Ending inventory Cost of Goods Sold a) Last in First Method $5,13,000 $2,02,250 $3,10,750 b) Weighted Average Cost $5,13,000 $2,32,875 $2,80,125 c) First In, first Out $5,13,000 $2,65,250 $2,47,750 d) Specific Identification $5,13,000 $2,26,850 $2,86,150
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