In: Accounting
During the year, Trombley Incorporated has the following inventory transactions.
Date | Transaction | Number of Units |
Unit Cost |
Total Cost |
Jan. 1 | Beginning inventory | 16 | $ 18 | $ 288 |
Mar. 4 | Purchase | 21 | 17 | 357 |
Jun. 9 | Purchase | 26 | 16 | 416 |
Nov. 11 | Purchase | 26 | 14 | 364 |
89 | $ 1,425 | |||
For the entire year, the company sells 69 units of inventory for $26 each.
1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
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2. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
LIFO | Cost of Goods Available for Sale | Cost of Goods Sold | Ending Inventory | ||||||
# of units | Average Cost per unit | Cost of Goods Available for Sale | # of units | Average Cost per unit | Cost of Goods Sold | # of units | Average Cost per unit | Ending Inventory | |
Beginning Inventory | |||||||||
Purchases: | |||||||||
Mar 04 | |||||||||
Jun 09 | |||||||||
Nov 11 | |||||||||
Total |
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3. Using weighted-average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round "Weighted-Average Cost per unit" to 2 decimal places.)
Weighted Average Cost | Cost of Goods Available for Sale | Cost of Goods Sold - Weighted Average Cost | Ending Inventory - Weighted Average Cost | ||||||
# of units | Average Cost per unit | Cost of Goods Available for Sale | # of units Sold | Average Cost per Unit | Cost of Goods Sold | # of units in Ending Inventory | Average Cost per unit | Ending Inventory | |
Beginning Inventory | 16 | $288 | |||||||
Purchases: | |||||||||
Mar.4 | 21 | 357 | |||||||
Jun.9 | 26 | 416 | |||||||
Nov.11 | 26 | 364 | |||||||
Total |
|
FIFO |
Cost of Goods available for sale |
Cost of Goods Sold |
Ending Inventory |
||||||
Units |
Cost/unit |
COG for sale |
Units sold |
Cost/unit |
COGS |
Units |
Cost/unit |
Ending inventory |
|
Beginning Inventory |
16 |
$ 18.00 |
$ 288.00 |
16 |
$ 18.00 |
$ 288.00 |
0 |
$ 18.00 |
$ - |
Purchases: |
|||||||||
04-Mar |
21 |
$ 17.00 |
$ 357.00 |
21 |
$ 17.00 |
$ 357.00 |
0 |
$ 17.00 |
$ - |
09-Jun |
26 |
$ 16.00 |
$ 416.00 |
26 |
$ 16.00 |
$ 416.00 |
0 |
$ 16.00 |
$ - |
11-Nov |
26 |
$ 14.00 |
$ 364.00 |
6 |
$ 14.00 |
$ 84.00 |
20 |
$ 14.00 |
$ 280.00 |
TOTAL |
89 |
$ 1,425.00 |
69 |
$ 1,145.00 |
20 |
$ 280.00 |
FIFO |
|
Sales Revenue |
$ 1,794.00 |
(-) Cost of Goods Sold (as calculated above) |
$ 1,145.00 |
Gross Margin |
$ 649.00 |
LIFO |
Cost of Goods available for sale |
Cost of Goods Sold |
Ending Inventory |
||||||
Units |
Cost/unit |
COG for sale |
Units sold |
Cost/unit |
COGS |
Units |
Cost/unit |
Ending inventory |
|
Beginning Inventory |
16 |
$ 18.00 |
$ 288.00 |
$ 18.00 |
$ - |
16 |
$ 18.00 |
$ 288.00 |
|
Purchases: |
0 |
$ - |
$ - |
||||||
04-Mar |
21 |
$ 17.00 |
$ 357.00 |
17 |
$ 17.00 |
$ 289.00 |
4 |
$ 17.00 |
$ 68.00 |
09-Jun |
26 |
$ 16.00 |
$ 416.00 |
26 |
$ 16.00 |
$ 416.00 |
0 |
$ 16.00 |
$ - |
11-Nov |
26 |
$ 14.00 |
$ 364.00 |
26 |
$ 14.00 |
$ 364.00 |
0 |
$ 14.00 |
$ - |
TOTAL |
89 |
$ 1,425.00 |
69 |
$ 1,069.00 |
20 |
$ 356.00 |
LIFO |
|
Sales Revenue |
$ 1,794.00 |
(-) Cost of Goods Sold (as calculated above) |
$ 1,069.00 |
Gross Margin |
$ 725.00 |
Average Method |
Cost of Goods available for sale |
Cost of Goods Sold |
Ending Inventory |
||||||
Units |
Cost/unit |
COG for sale |
Units sold |
Cost/unit |
COGS |
Units |
Cost/unit |
Ending inventory |
|
Beginning Inventory |
16 |
$ 18.00 |
$ 288.00 |
||||||
Purchases: |
0 |
$ - |
$ - |
||||||
04-Mar |
21 |
$ 17.00 |
$ 357.00 |
||||||
09-Jun |
26 |
$ 16.00 |
$ 416.00 |
||||||
11-Nov |
26 |
$ 14.00 |
$ 364.00 |
||||||
TOTAL |
89 |
$ 16.01 |
$ 1,425.00 |
69 |
$ 16.01 |
$ 1,104.7 or $ 1105 |
20 |
$ 16.01 |
$ 320.20 or $ 320 |
Weighted Average |
|
Sales Revenue |
$ 1,794.00 |
(-) Cost of Goods Sold (as calculated above) |
$ 1,104.69 or $ 1105 |
Gross Margin |
$ 689.31 or $ 689 |