Question

Inventory balance - 500 units $10.00

Purchase, April 11 - 800 units $8.00

Purchase , June 1 - 700 units $12.00

Sale May 1 (sold at $38.00 per unit)

- 500 units

Sale July 3 (sold at $38.00 per unit) - 520 units

Operating expense (excluding income tax expense) $19,009

FIFO, LIFO and weight average

Is 500 times 38 units ? Calculate number of goods avail and CSG

Ending inventory

FIFO, LIFO and weighted average

Income statement

Answer 1

a) Perpetual FIFO :
	Goods purchased			Cost of goods sold			Inventory Balance
Date	No of units	Cost per unit	Amount	No of units	Cost per unit	Amount	No of units	Cost per unit	Amount
Beginning							500	10	5000
Apr-11	800	8	6400				500	10	5000
							800	8	6400
May-01				500	10	5000	0	10	0
							800	8	6400
Jun-01	700	12	8400				0	10	0
							800	8	6400
							700	12	8400
Jul-03				520	8	4160	0	10	0
							280	8	2240
							700	12	8400
Total				1020		9160	980		10640
c).. Perpetual Weighted average
	Goods purchased			Cost of goods sold			Inventory Balance
Date	No of units	Cost per unit	Amount	No of units	Cost per unit	Amount	No of units	Cost per unit	Amount
Beginning							500	10	5000
Apr-11	800	8	6400				500	10	5000
							800	8	6400
Average cost							1300	8.77	11400
May-01				500	8.77	4385	800	8.77	7015
Jun-01	700	12	8400				800	8.77	7015
							700	12	8400
Average cost							1500	10.28	15415
Jul-03				520	10.28	5346	980	10.28	10069
Total				1020		9730	980		10069
b) Perpetual LIFO :
	Goods purchased			Cost of goods sold			Inventory Balance
Date	No of units	Cost per unit	Amount	No of units	Cost per unit	Amount	No of units	Cost per unit	Amount
Beginning							500	10	5000
Apr-11	800	8	6400				500	10	5000
							800	8	6400
May-01				500	8	4000	500	10	5000
							300	8	2400
Jun-01	700	12	8400				500	10	5000
							300	8	2400
							700	12	8400
Jul-03				520	12	6240	500	10	5000
							300	8	2400
							180	12	2160
				1020		10240	980		9560
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31
PARTICULARS	FIFO	LIFO	WEIGHTED AVERAGE	Explaination
a)Sales revenue'	38760	38760	38760	(500*38)+(520*38)
b)cost of goods sold	9160	10240	9730	From table
Gross profit (a)-(b)	29600	28520	29030
Operaitng expenses	-19009	-19009	-19009	Given
Income (loss) from operations	10591	9511	10021
Ending inventory :	units	Value
FIFO	980	10640
Weighted average	980	10069
LIFO	980	9560