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Compute the April cost of goods sold using moving average method, and LIFO method. Units Unit...

Compute the April cost of goods sold using moving average method, and LIFO method.

Units

Unit Cost

Total Cost

April 1 inventory

300

$35

$10,500

April 15 purchase

400

$40

$16,000

April 16 sales

205

April 23 purchase

200

$45

$9,000

April 24 sales

305

Solutions

Expert Solution

Answer:

Using the Moving Average Method:

Date Particulars Units Unit Cost Average Unit Cost Amount
April 1 Opening Inventory 300 35 35 10500
April 15 Purchase 400 40 16000
April 16 Sales 205 37.86 7761.30
April 23 Purchase 200 45 9000
April 24 Sales 305 39.91 12172.55
April Closing Inventory 390 39.91 15564.90

Cost of Goods sold using Moving Average method are as follows:

Particulars Amount
Opening Inventory 10500
Add: Purchase 25000
Less: Closing Inventory 15564.90
Cost of Goods Sold 19935.10

Using LIFO Method:

Date Particulars Units Unit Cost Amount Working
April 1 Opening Inventory 300 35 10500
April 15 Purchase 400 40 16000
April 16 Sales 205 40 8200 205*40
April 23 Purchase 200 45 9000
April 24 Sales 305 13200 (200*45)+(105*40)
April Closing Inventory 390 14100 (90*40)+(300*35)

Cost of Goods sold using LIFO method are as follows:

Particulars Amount
Opening Inventory 10500
Add: Purchase 25000
Less: Closing Inventory 14100
Cost of Goods Sold 21400

ekkarill92 answered 3 years ago
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