FAZ Tutorial 3 Ons- Financial Accounting 2-Tutorial 3 lowa Company is a multi-pr
ID: 2600958 • Letter: F
Question
FAZ Tutorial 3 Ons- Financial Accounting 2-Tutorial 3 lowa Company is a multi-product firm. Presented below is information concerning one of its products, the Hawkeye. DateTransaction 1/1 Beginning inventory 2/4 Purchase 2/20 Sale 4/2 Purchase 4/11 Sale Quantity 1,000 2,000 2,500 3,000 2,000 Price/Cost 18 30 23 Required: Calculate the cost of goods sold and closing inventory valuation using FIFO, LIFO and WAC. 2. Gerry Gallagher has recently set upin business sling plastictoys. The transactions for his first month of trading are: 1 April 3 April 7 April 14 April 20 April 27 April Bought 500 toys at E1.50 each Sold 250 toys at E2.50 eacho Bought 1,000 toys at E1.40 each Sold 600 toys at £2.60 each Sold 300 toys at £2.70 each Bought 1,050 toys at £1.62 each rs ynu to hele him to value his closing inventory. He has heardExplanation / Answer
Calculation of cost of goods sold and closing inventory using FIFO Date Purchases Cost of goods sold Closing Inventory Units Rate per unit Total Units Rate per unit Total Units Rate per unit Total 1/1 1000 $12 $12,000 2/4 2000 $18 $36,000 1000 $12 $12,000 2000 $18 $36,000 2/10 1000 $12 $12,000 1500 $18 $27,000 500 $18 $9,000 4/2 3000 $23 $69,000 500 $18 $9,000 3000 $23 $69,000 4/11 500 $18 $9,000 1500 $23 $34,500 1500 $23 $34,500 $82,500 $34,500 Cost of goods sold $82,500 Closing Inventory $34,500 Calculation of cost of goods sold and closing inventory using LIFO Date Purchases Cost of goods sold Closing Inventory Units Rate per unit Total Units Rate per unit Total Units Rate per unit Total 1/1 1000 $12 $12,000 2/4 2000 $18 $36,000 1000 $12 $12,000 2000 $18 $36,000 2/10 2000 $18 $36,000 500 $12 $6,000 500 $12 $6,000 4/2 3000 $23 $69,000 500 $12 $6,000 3000 $23 $69,000 4/11 2000 $23 $46,000 500 $12 $6,000 1000 $23 $23,000 $88,000 $29,000 Cost of goods sold $88,000 Closing Inventory $29,000 Calculation of cost of goods sold and closing inventory using WAC Date Purchases Cost of goods sold Closing Inventory Units Rate per unit Total Units Rate per unit Total Units Rate per unit Total 1/1 1000 $12 $12,000 2/4 2000 $18 $36,000 3000 $16 $48,000 2/10 2500 $16 $40,000 500 $16 $8,000 4/2 3000 $23 $69,000 3500 $22 $77,000 4/11 2000 $22 $44,000 1500 $22 $33,000 $84,000 $33,000 Cost of goods sold $84,000 Closing Inventory $33,000
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