units cost/unit total cost beginning inventory 1,000.00 10.00 10,000.00 1/15/201
ID: 2425320 • Letter: U
Question
units cost/unit total cost
beginning inventory 1,000.00 10.00 10,000.00
1/15/2014 500.00 11.00 5,500.00
3/30/2014 2,000.00 15.00 30,000.00
4/15/2014 800.00 14.00 11,200.00
5/29/2014 3,000.00 16.00 48,000.00
6/28/2014 1,200.00 15.50 18,600.00
goods available for sale 8,500.00 113,300.00
sales units
1/20/2014 600.00
4/1/2014 1,500.00
5/10/2014 1,200.00
6/21/2014 1,300.00
total sales 4,600.00
ending inventory units 3,900.00
Using the perpetual inventory system, please calculate both ending inventory and cost of goods sold :
a. FIFO b. LIFO c. Moving/weighted average
Explanation / Answer
a. FIFO
Cost of goods sold = 600 x 10 + 400 x 10 + 500 x 11 + 600 x 15 + 1200 x 15 + 200 x 15 + 800 x 14 + 100 x 16
= 58300
Closing inventory = 2900 x 16 + 1200 x 15.50
= 65000
b. LIFO
Cost of goods sold = 1200 x 15.50 + 3000 x 16 + 400 x 14
= 72200
Closing inventory = 10000 + 5500 + 30000 + 400 x 14
= 51100
c. Weighted average
Cost of goods sold = 113300/8500 x 4600 = 61315
Ending inventory = 113300/8500 x 3900 = 51985
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.