2. Child\'s Play provides snack packs to the children who participate in program

Question

2. Child's Play provides snack packs to the children who participate in programming. The organization started FY 2015 with 175 snack packs, which had been purchased in FY 2014 for $1.50 each. By October FY 2015, all 175 snack packs had been used, so the organization purchased 200 more snack packs at a price of $1.75 each. In February, there were only 45 snack packs left, so the organization paid $450 for 225 additional snack packs. On the last day of FY 2015, there were 40 snack packs remaining. Calculate each of the following in Excel, showing both your solutions and your formulas (by putting an apostrophe in front of the equals sign). a) Calculate the supplies expense using LIFO. b) Calculate the supplies expense using FIFO. c) Calculate the inventory balance using LIFO. d) Calculate the inventory balance using FIFO.

Explanation / Answer

Answer =   CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER FIFO METHOD PURCHASES/ Opening Stock 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 FY 2015 Opening Balance 175 $             1.50 $               262.50 175 $           1.50 $      262.50 In Middle Sold 175 $               1.50 $         262.50 0 $                -   $                -   In Middle Purchases 200 $             1.75 $               350.00 200 $           1.75 $      350.00 In Middle Sold (200 units - 45 units = 155 unit sold) 155 $               1.75 $         271.25 45 $           1.75 $         78.75 In Middle Purhcase 225 $2.00 $               450.00 45 $           1.75 $         78.75 225 $2.00 $      450.00 In Middle Sold (270 units -40 units = 230 Units) 45 $               1.75 $           78.75 185 $2.00 $         450.00 40 $2.00 $         80.00 Total 560 2 1062.5 40 $         80.00 Unit Amoun Supplies Expenses as per FIFO Method 560 $1,062.50 Inventory Balance as per FIFO 40 80 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 FY 2015 Opening Balance 175 $             1.50 $               262.50 175 $           1.50 $      262.50 In Middle Sold 175 $               1.50 $         262.50 0 $                -   $                -   In Middle Purchases 200 $             1.75 $               350.00 200 $           1.75 $      350.00 In Middle Sold (200 units - 45 units = 155 unit sold) 155 $               1.75 $         271.25 45 $           1.75 $         78.75 In Middle Purhcase 225 $2.00 $               450.00 45 $           1.75 $         78.75 225 $2.00 $      450.00 In Middle Sold (270 units -40 units = 230 Units) 225 $2.00 $         450.00 5 $               1.75 $             8.75 40 $           1.75 $         70.00 Total 560 1.75 992.5 40 $         70.00 Unit Amoun Supplies Expenses as per LIFO Method 560 $        992.50 Inventory Balance as per LIFO 40 $          70.00 Answers: a) Supplies Expenses as per LIFO Method = $              992.50 b) Supplies Expenses as per FIFO Method= $                70.00 C) Inventory Balance as per LIFO= $1,062.50 d) Inventory Balance as per FIFO= $80.00

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