In: Accounting
Date |
Transaction |
Quantity |
Price/Cost |
1/1 |
Beginning inventory |
2,000 |
10.00 |
1/3 |
Purchases |
18,000 |
10.40 |
1/7 |
Sales (@ $26 per unit) |
7,000 |
|
1/20 |
Purchases |
6,000 |
11.00 |
1/22 |
Sales (@ $27 per unit) |
16,000 |
|
1/30 |
Purchases |
3,000 |
12.00 |
Correct Anwer:
Requirement 1 : Periodic Inventory System
Cost of Goods Available for sale |
|||
Units |
Cost per unit |
value |
|
Beginning Inventory |
2000 |
$ 10.00 |
$ 20,000.00 |
Purchases |
18000 |
10.4 |
$ 1,87,200.00 |
10-Jan |
6000 |
$ 11.00 |
$ 66,000.00 |
20-Jan |
3000 |
$ 12.00 |
$ 36,000.00 |
total |
29000 |
$ 3,09,200.00 |
FIFO (Periodic) |
||||
Total Units Avalable for sale |
29000 |
$ 3,09,200.00 |
||
Units Sold |
23000 |
|||
Ending Inventory Units |
6000 |
|||
Valuation |
||||
Cost of Goods Sold |
$ - |
|||
2000 |
$ 10.00 |
$ 20,000.00 |
||
5000 |
$ 10.40 |
$ 52,000.00 |
||
13000 |
10.4 |
$ 1,35,200.00 |
||
3000 |
11 |
$ 33,000.00 |
||
total cost of goods sold |
$ 2,40,200.00 |
|||
Ending Inventory |
(309,200 – 240,200) |
$ 69,000 |
LIFO (Periodic) |
||||
Total Units Available for sale |
29000 |
$ 3,09,200.00 |
||
Units Sold |
23000 |
|||
Ending Inventory Units |
6000 |
|||
Valuation |
||||
Ending Inventory |
3000 |
$ 12.00 |
$ 36,000.00 |
|
4000 |
$ 11.00 |
$ 44,000.00 |
||
2000 |
$ 11.00 |
$ 22,000.00 |
||
14000 |
$ 10.40 |
$ 1,45,600.0 |
||
Value Of Ending Inventory |
$ 2,47,600 |
|||
Cost of Goods sold |
(309,200 -247,600) |
$ 61,600.00 |
Weighted Average Cost |
||
Units |
(A) |
29000 |
Total Cost |
(B) |
$ 3,09,200 |
Average Cost |
(C=B/A) |
$ 10.66 |
Weighted Average |
||||
Total Units Available for sale |
29000 |
$ 3,09,200.00 |
||
Units Sold |
23000 |
|||
Ending Inventory Units |
6000 |
|||
Valuation |
||||
Cost of Goods sold |
23000 |
@ |
$ 10.66 |
$ 2,45,227.59 |
Total cost of Goods Sold |
$ 2,45,227.59 |
|||
Ending Inventory |
(309,200 – 245,277.59) |
$ 63,972.41 |
Requirement 2: Perpetual Inventory .
Cost of Goods Available for sale |
|||
Units |
Cost per unit |
value |
|
Beginning Inventory |
2000 |
$ 10.00 |
$ 20,000.00 |
Purchases |
18000 |
10.4 |
$ 1,87,200.00 |
10-Jan |
6000 |
$ 11.00 |
$ 66,000.00 |
20-Jan |
3000 |
$ 12.00 |
$ 36,000.00 |
total |
29000 |
$ 3,09,200.00 |
FIFO (Perpetual) |
||||
Total Units Available for sale |
29000 |
$ 3,09,200.00 |
||
Units Sold |
23000 |
|||
Ending Inventory Units |
6000 |
|||
Valuation |
||||
Cost of Goods Sold |
$ - |
|||
2000 |
$ 10.00 |
$ 20,000.00 |
||
5000 |
$ 10.40 |
$ 52,000.00 |
||
13000 |
10.4 |
$ 1,35,200.00 |
||
3000 |
11 |
$ 33,000.00 |
||
total cost of goods sold |
$ 2,40,200.00 |
|||
Ending Inventory |
($ 309,200 – 240,200) |
$ 69,000 |
||
LIFO (Perpetual) |
||||
Total Units Available for sale |
29000 |
$ 3,09,200.00 |
||
Units Sold |
23000 |
|||
Ending Inventory Units |
6000 |
|||
Valuation |
||||
Cost of Goods sold |
7000 |
$ 10.40 |
$ 72,800.00 |
|
6000 |
$ 11.00 |
$ 66,000.00 |
||
10000 |
$ 10.40 |
$ 1,04,000.00 |
||
Cost of Goods Sold |
$ 2,42,800 |
|||
Value of Ending Inventory |
($309,200 – 242,800) |
$ 66,400.00 |
Average cost per unit as on (1/7) |
|||
units |
cost |
total |
|
beginning balance |
2000 |
$ 10.00 |
$ 20,000.00 |
purchases (1/3) |
18000 |
$ 10.40 |
$ 1,87,200.00 |
total |
20000 |
$ 2,07,200.00 |
|
average cost per unit |
$ 10.36 |
Average cost per unit as on (1/22) |
|||
units |
cost |
total |
|
beginning balance |
13000 |
$ 10.36 |
$ 1,34,680.00 |
purchases (1/3) |
6000 |
$ 11.00 |
$ 66,000.00 |
total |
19000 |
$ 2,00,680.00 |
|
average cost per unit |
$ 10.56 |
Weighted Average (perpetual Inventory) |
||||
Total Units Avalable for sale |
29000 |
$ 3,09,200.00 |
||
Units Sold |
23000 |
|||
Ending Inventory Units |
6000 |
|||
Valuation |
||||
Cost of Goods sold |
7000 |
@ |
$ 10.36 |
$ 72,520.00 |
16000 |
@ |
$ 10.56 |
$ 1,68,993.68 |
|
Total cost of Goods Sold |
$ 2,41,513.68 |
|||
Ending Inventory |
($ 309,200 – $ 241,513.68) |
$ 67,686.32 |
End of Answer:
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