Question

Sunland Sports began operations on January 2, 2020. The following stock record card for footballs was taken from the records at the end of the year.

Date		Voucher		Terms		Units Received				Unit Invoice Cost		Gross Invoice Amount
1/15		10624		Net 30			63			$27			$1,701
3/15		11437		1/5, net 30			78			21			1,638
6/20		21332		1/10, net 30			103			20			2,060
9/12		27644		1/10, net 30			97			16			1,552
11/24		31269		1/10, net 30			89			15			1,335
		Totals					430						$8,286

A physical inventory on December 31, 2020, reveals that 120 footballs were in stock. The bookkeeper informs you that all the discounts were taken. Assume that Sunland Football Shop uses the invoice price less discount for recording purchases.

Compute the December 31, 2020, inventory using the FIFO method. (Round per unit and final answer to 2 decimal paces, e.g. 35.57.)

Ending Inventory using the FIFO method

$

  

Compute the 2020 cost of goods sold using the LIFO method. (Round per unit and final answer to 2 decimal paces, e.g. 35.57.)

Cost of Goods Sold using the LIFO method

$

  

Answer 1

Analysis of given information

Date	Voucher	Terms	Units Received	Unit Invoice Cost	Discount Amount	Unit cost After Discount	Gross Invoice Amount	Value of stock after discount
15-01-2020	10624	Net 30	63	27	0	27	1701	1701
15-03-2020	11437	1/5, net 30	78	21	0.21	20.79	1638	1621.62
20-06-2020	21332	1/10, net 30	103	20	0.2	19.8	2060	2039.4
12-09-2020	27644	1/10, net 30	97	16	0.16	15.84	1552	1536.48
24-11-2020	31269	1/10, net 30	89	15	0.15	14.85	1335	1321.65
			430				8286	8220.15

Computation of Closing inventory using the FIFO Method.

Purchase	Sales	Closing
Date	Voucher	Quantity	Rate	Date	Voucher	Quantity	Rate	Date	Voucher	Quantity	Rate
15-01-2020	10624	63	27.00
15-03-2020	11437	78	20.79
20-06-2020	21332	103	19.80
12-09-2020	27644	97	15.84
24-11-2020	31269	89	14.85
				31-12-2020	10624	63	27
				31-12-2020	11437	78	20.79
				31-12-2020	21332	103	19.8
				31-12-2020	27644	66	15.84
								31-12-2020	27644	31	15.84
								31-12-2020	31269	89	14.85

Value Of Closing Inventory	[(31*15.84)+(89*14.85)]
	$ 1812.69

Computation of Cost of goods sold using the LIFO Method.

Sales
Voucher	Quantity	Rate	Amount
31269	89	14.85	1321.65
27644	97	15.84	1536.48
21332	103	19.8	2039.4
11437	21	20.79	436.59
	310		5,334.12

Amount of goods sold - $ 5,334.12

Note:

1. Rate means the rate of purchase of goods after discount