Kehayes Manufacturing Co. has the following You are to compute the inventory val

Question

Kehayes Manufacturing Co. has the following You are to compute the inventory value and cost of sales for the transactions below using the FIFO LIFO and AVERAGE COSTING METHODS. You are also to compute the T Use the attached worksheets. OTAL COST OF SALES UNNING TOTAL UNITS PURCHASE PRICE PER UNIT BEGINNING INVENTORY 1,000 6,000 4,000 16,000 15,000 18,000 7,000 2,000 11,000 1,000 7,000 3,000 19,000 PURCHASE 1, JANUARY 5 SALE 1, JANUARY 10 PURCHASE 2, JANUARY 12 SALE 2, JANUARY 15 PURCHASE 3, JANUARY 21 SALE 3, JANUARY 23 PURCHASE 4, JANUARY 26 $22.00 $22.50 $26.50 22,000 15,000 17,000 6,000 $27.40 SALE 4, JANUARY 27

Explanation / Answer

Solution:

FIFO Inventory balance cost of goods sold Description Units x Unit cost = Total Units x Unit cost = Total Beginning Inventory 1000 $21.00 $21,000.00 After Purchase 1: Units from Beginning Inventory 1000 $21.00 $21,000.00 Units from Purchase 1 6000 $22.00 $132,000.00 Total 7000 $153,000.00 After Sale 1: Units from Beginning Inventory 0 $0.00 1000 $21.00 $21,000.00 Units from Purchase 1 3000 $22.00 $66,000.00 3000 $22.00 $66,000.00 Total 3000 $66,000.00 4000 $87,000.00 After Purchase 2: Units from Beginning Inventory 0 $0.00 Units from Purchase 1 3000 $22.00 $66,000.00 Units from Purchase 2 16000 $22.50 $360,000.00 Total 19000 $426,000.00 After Sale 2: Units from Beginning Inventory 0 $0.00 0 $0.00 $0.00 Units from Purchase 1 0 $0.00 3000 $22.00 $66,000.00 Units from Purchase 2 4000 $22.50 $90,000.00 12000 $22.50 $270,000.00 Total 4000 $90,000.00 15000 $336,000.00 After Purchase 3: Units from Beginning Inventory 0 $0.00 Units from Purchase 1 0 $0.00 Units from Purchase 2 4000 $22.50 $90,000.00 Units from Purchase 3 18000 $26.50 $477,000.00 Total 22000 $567,000.00 After Sale 3: Units from Beginning Inventory 0 $0.00 0 $0.00 $0.00 Units from Purchase 1 0 $0.00 0 $0.00 $0.00 Units from Purchase 2 0 $0.00 4000 $22.50 $90,000.00 Units from Purchase 3 15000 $26.50 $397,500.00 3000 $26.50 $79,500.00 Total 15000 $397,500.00 7000 $169,500.00 After Purchase 4: Units from Beginning Inventory 0 $0.00 Units from Purchase 1 0 $0.00 Units from Purchase 2 0 $0.00 Units from Purchase 3 15000 $26.50 $397,500.00 Units from Purchase 4 2000 $27.40 $54,800.00 Total 17000 $452,300.00 After Sale 4: Units from Beginning Inventory 0 $0.00 0 $0.00 $0.00 Units from Purchase 1 0 $0.00 0 $0.00 $0.00 Units from Purchase 2 0 $0.00 0 $0.00 $0.00 Units from Purchase 3 4000 $26.50 $106,000.00 11000 $26.50 $291,500.00 Units from Purchase 4 2000 $27.40 $54,800.00 0 $0.00 $0.00 Total 6000 $160,800.00 11000 $291,500.00 Total Cost of goods sold $884,000.00

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.