All-Pages Book Company reports the following inventory transactions during the c

Question

All-Pages Book Company reports the following inventory transactions during the current month. All-Pages uses the perpetual method for inventory Number of Units Unit Cost Total Cost Event Date Dec. I s12 14 15 $4,800 400 500 400 1,050 200 500 750 Beg. Inventory 7,000 6,000 Purchasc Purchase Sale Purchase Purchase 13b 15 ch 2415 28ch 16 20 3,200 10,000 Dec.30 Sale Required: Calculate the Cost of Goods Sold using the Weighted Average, FIFO, and LIFO inventory costing methods. Fill in the following table with DOLLAR AMOUNTS SS: Weighted Ave. Cost FIFO LIFO Cost of Goods Sold

Explanation / Answer

Answers:

Working Notes

FIFO

LIFO

Weighted Average:

Average cost of units sold on Dec 15th = ($4800+$7000+$6000) / (400+500+400) = $13.69 per unit

Cost of goods sold on Dec 15th = 1050 x $13.69 = $14374.50

Cost of the ending inventory as on Dec 15th = ($4800+$7000+$6000) - $14374.50 = $3425.50

Average cost per unit of the goods sold on 30th Dec = ($3425.50+$3200+$10000) / (250+200+500) = $17.50

Cost of goods sold on Dec 31 = 750 x $17.50 = $13125

Cost of ending inventory = 200 x $17.50 = $3500

Total cost of goods sold = 14374.50+13125 = $27499.50

Weighted Average FIFO LIFO Cost of goods sold $ 27,499.50 $ 27,000 $ 28,600

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