Question

Renford Corporation is a manufacturing firm. Presented below is information concerning one of its products:

1/1	Beginning inventory	4,480	$15
2/12	Purchase	4,960	$20
3/2	Sale	3,880	$33
4/18	Purchase	6,400	$23
5/31	Sale	5,560	$35

Compute the cost of goods sold under the following situations:

1. Periodic system, FIFO cost flow
2. Perpetual system, FIFO cost flow
3. Periodic system, LIFO cost flow
4. Perpetual system, LIFO cost flow
5. Periodic system, weighted-average cost flow
6. Perpetual system, moving-average cost flow

Your answers must be submitted in an Excel file and must show all calculations used to arrive at the final answers.

Answer 1

Solution 1:

Computation of COGS and ending inventory - Periodic FIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	4480	$15.00	$67,200	4480	$15.00	$67,200.00	0	$15.00	$0.00
Purchases:
12-Feb	4960	$20.00	$99,200	4960	$20.00	$99,200.00	0	$20.00	$0.00
18-Apr	6400	$23.00	$147,200	0	$23.00	$0.00	6400	$23.00	$147,200.00
Total	15840		$313,600	9440		$166,400.00	6400		$147,200.00

Solution 2:

Computation of ending inventory COGS under FIFO - Perpectual
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1-Jan	4480	$15.00	$67,200.00	0	$0.00	$0.00	0	$0.00	$0.00	4480	$15.00	$67,200.00
12-Feb	4480	$15.00	$67,200.00	4960	$20.00	$99,200.00	0	$0.00	$0.00	4480	$15.00	$67,200.00
										4960	$20.00	$99,200.00
2-Mar	4480	$15.00	$67,200.00	0	$0.00	$0.00	3880	$15.00	$58,200.00	600	$15.00	$9,000.00
	4960	$20.00	$99,200.00							4960	$20.00	$99,200.00
18-Apr	600	$15.00	$9,000.00	6400	$23.00	$147,200.00	0	$0.00	$0.00	600	$15.00	$9,000.00
	4960	$20.00	$99,200.00							4960	$20.00	$99,200.00
										6400	$23.00	$147,200.00
31-May	600	$15.00	$9,000.00	0	$0.00	$0.00	600	$15.00	$9,000.00	6400	$23.00	$147,200.00
	4960	$20.00	$99,200.00				4960	$20.00	$99,200.00
	6400	$23.00	$147,200.00
Total							9440		$166,400.00	6400		$147,200.00

Solution 3:

Computation of COGS and ending inventory - Periodic LIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	4480	$15.00	$67,200	0	$15.00	$0.00	4480	$15.00	$67,200.00
Purchases:
12-Feb	4960	$20.00	$99,200	3040	$20.00	$60,800.00	1920	$20.00	$38,400.00
18-Apr	6400	$23.00	$147,200	6400	$23.00	$147,200.00	0	$23.00	$0.00
Total	15840		$313,600	9440		$208,000.00	6400		$105,600.00

Solution 4:

Computation of ending inventory COGS under LIFO - Perpectual
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1-Jan	4480	$15.00	$67,200.00	0	$0.00	$0.00	0	$0.00	$0.00	4480	$15.00	$67,200.00
12-Feb	4480	$15.00	$67,200.00	4960	$20.00	$99,200.00	0	$0.00	$0.00	4480	$15.00	$67,200.00
										4960	$20.00	$99,200.00
2-Mar	4480	$15.00	$67,200.00	0	$0.00	$0.00	3880	$20.00	$77,600.00	4480	$15.00	$67,200.00
	4960	$20.00	$99,200.00							1080	$20.00	$21,600.00
18-Apr	4480	$15.00	$67,200.00	6400	$23.00	$147,200.00	0	$0.00	$0.00	4480	$15.00	$67,200.00
	1080	$20.00	$21,600.00							1080	$20.00	$21,600.00
										6400	$23.00	$147,200.00
31-May	4480	$15.00	$67,200.00	0	$0.00	$0.00	5560	$23.00	$127,880.00	4480	$15.00	$67,200.00
	1080	$20.00	$21,600.00							1080	$20.00	$21,600.00
	6400	$23.00	$147,200.00							840	$23.00	$19,320.00
Total							9440		$205,480.00	6400		$108,120.00

Solution 5:

Computation of COGS and ending inventory - Periodic Weighted Average cost method
Particulars	Cost of goods available for sale			Cost of goods sold - Average cost			Ending Inventory - Average cost
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	4480	$15.00	$67,200
Purchases:
1-Feb	4960	$20.00	$99,200
1-Mar	6400	$23.00	$147,200
Total	15840	$19.80	$313,600	9440	$19.80	$186,893	6400	$19.80	$126,707

Solution 6: