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