Question

Concord Limited uses a perpetual inventory system. The inventory records show the following data for its first month of operations:

Date			Explanation		Units		Unit Cost		Total Cost		Balance in Units
Aug.	2		Purchases		237		$73		$17,301		237
	3		Purchases		475		97		46,075		712
	10		Sales		(300	)					412
	15		Purchases		894		122		109,068		1,306
	25		Sales		(330	)					976

Calculate the cost of goods sold and ending inventory using the FIFO cost method.

Cost of goods sold	$enter a dollar amount
Ending inventory	$enter a dollar amount

Calculate the cost of goods sold and ending inventory using the average cost method. (Round average cost per unit and final answers to 2 decimal places, e.g. 1.25.)

Cost of goods sold	$enter a dollar amount
Ending inventory	$enter a dollar amount

Answer 1

Answer)

Calculation of Cost of goods sold and value of ending inventory using FIFO cost method

Date	Purchase	Cost of goods sold	Balance Inventory
Quantity	Cost per Unit (In $)	Total Cost (In $)	Quantity	Cost per Unit (In $)	Total Cost (In $)	Quantity	Cost per Unit (In $)	Total Cost (In $)
Aug'2	237	73.00	17,301.00				237	73.00	17,301.00
Aug'3	475	97.00	46,075.00				237	73.00	17,301.00
							475	97.00	46,075.00
Aug'10				237	73.00	17,301.00	412	97.00	39,964.00
				63	97.00	6,111.00
Aug'15	894	122.00	109,068.00				412	97.00	39,964.00
							894	122.00	109,068.00
Aug'25				330	97.00	32,010.00	82	97.00	7,954.00
							894	122.00	109,068.00
Total	1606		172,444.00	630		55,422.00	976		117,022.00

FIFO Method:

Value of ending inventory = $ 117,022

Cost of goods sold = $ 55,422

Answer)

Calculation of Cost of goods sold and value of ending inventory using average cost method

Date	Purchase	Cost of goods sold	Balance Inventory
Quantity	Cost per Unit (In $)	Total Cost (In $)	Quantity	Cost per Unit (In $)	Total Cost (In $)	Quantity	Cost per Unit (In $)	Total Cost (In $)
Aug'2	237	73.00	17,301.00				237	73.00	17,301.00
Aug'3	475	97.00	46,075.00				237	73.00	17,301.00
							475	97.00	46,075.00
							712	89.01	63,376.00
Aug'10				300	89.01	26,703.37	412	89.01	36,672.63
Aug'15	894	122.00	109,068.00				412	89.01	36,672.63
							894	122.00	109,068.00
							1306	111.59	145,740.63
Aug'25				330	111.59	36,825.73	976	111.59	108,914.90
Total	1606		172,444.00	630		63,529.10	976		108,914.90

Average cost Method:

Value of ending inventory = $ 108,914.90

Cost of goods sold = $ 63,529.10