Question

In: Accounting

Cost layers for perpetual system is given, how to calculate cost of goods sold, ending inventory...

Cost layers for perpetual system is given, how to calculate cost of goods sold, ending inventory under LIFO, FIFO, and Average cost

Solutions

Expert Solution

Under LIFO Method.

> Cost of goods sold = Units sold* purchase cost( here last purchase units are sold first)

> Ending inventory = Unit of closing stock * Purchase cost ( here first purchases are taken for valuation of closing stock.

Under FIFO Method.

> Cost of goods sold = Units sold* purchase cost( here first purchase units are sold first)

> Ending inventory = Unit of closing stock * Purchase cost ( here last purchases are taken for valuation of closing stock.


Related Solutions

Calculate cost of goods sold and ending inventory under each of the following methods given the...
Calculate cost of goods sold and ending inventory under each of the following methods given the following information about purchases and sales during the year. Jan. 1           Beginning Inventory       300 units @ $3 Jan. 5           Sales                                      100 units Jan. 15        Purchases                           400 units @ $4 Jan. 20        Sales                                      200 units a. FIFO. b. LIFO.
From the following, calculate the cost of ending inventory and cost of goods sold for the...
From the following, calculate the cost of ending inventory and cost of goods sold for the weighted-average method, ending inventory is 56 units. (Round your intermediate calculations and final answers to the nearest cent.) Beginning inventory and purchases Units Unit cost January 1 6 $ 2.70 April 10 9 3.20 May 15 13 3.70 July 22 14 3.95 August 19 19 4.70 September 30 19 4.90 November 10 33 5.10 December 15 15 5.50 cost of ending inventory? Cost of...
From the following, calculate the cost of ending inventory and cost of goods sold for the...
From the following, calculate the cost of ending inventory and cost of goods sold for the LIFO method, ending inventory is 54 units. (Round your answers to the nearest cent.) Beginning inventory and purchases Units Unit cost January 1 6 $ 1.00 April 10 9 1.50 May 15 13 2.00 July 22 14 2.25 August 19 19 3.00 September 30 19 3.20 November 10 33 3.40 December 15 15 3.80 Cost of ending inventory $ Cost of goods sold $
Calculate the cost of goods sold and the cost of the ending inventory using the LIFO...
Calculate the cost of goods sold and the cost of the ending inventory using the LIFO periodic cost flow assumption. Sales 97 units at $ 18 per unit Beginning inventory 88 units at $ 6 per unit Purchases 58 units at $ 10 per unit Calculate the cost of goods sold using the LIFO periodic cost flow assumption. Units x Cost per Unit = Total Cost Units from beginning inventory x = Units from purchase x = Cost of Goods...
Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual...
Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 290 @ $13.60 = $3,944.00 January 10 260 @ $13.60 = $3,536.00 30 @ $13.60 = $408.00 March 14 500 @ $18.60 30 @ $13.60 = $408.00...
Inventory data are presented below. Please calculate the ending inventory and the cost of goods sold...
Inventory data are presented below. Please calculate the ending inventory and the cost of goods sold (at 1/31) using the methods listed below. 1/1 - Beginning inventory 6 units at $5 1/10 - Purchase                           11 units at $6 1/15 - Sale 13 units 1/20 - Purchase                           15 units at $7 1/25 - Sale                                   11 units Inventory                 Cost of Goods Sold Periodic FIFO a) $__________ b) $__________ Periodic LIFO c) $__________ d) $__________ Periodic Weighted Average e) $__________...
how do you calculate ending inventory or cost of goods sold under LIFO and FIFO    ...
how do you calculate ending inventory or cost of goods sold under LIFO and FIFO     how do you use the Gross Profit Method to estimate a loss of inventory how do you use the relative sales value method of allocating cost to items purchased What are the common disclosures required for inventory?
How can i calculate Cost of goods sold and ending inventory using FIFO, LIFO and the...
How can i calculate Cost of goods sold and ending inventory using FIFO, LIFO and the periodic system given the information below? On December 1, 2017, Ivanhoe Company had the account balances shown below. Debits Credits Cash $5,180 Accumulated Depreciation—Equipment $1,460 Accounts Receivable 4,230 Accounts Payable 2,710 Inventory (2,900 x $0.60) 1,740 Common Stock 10,200 Equipment 21,400 Retained Earnings 18,180 $32,550 $32,550 The following transactions occurred during December. Dec. 3 Purchased 3,900 units of inventory on account at a cost...
From the following? information, calculate the cost of ending inventory and cost of goods sold using...
From the following? information, calculate the cost of ending inventory and cost of goods sold using the? (a) FIFO,? (b) LIFO, and? (c) weighted-average methods. Units Cost January 1 Beginning Inventory 4 $7 March 6 Purchased 6 2 August 9 Purchased 4 9 December 10 Purchased 5 1 The ending inventory reveals eighteight items unsold
Calculating the Value of Ending Inventory and Cost of Goods Sold: Perpetual Method Total Units Unit...
Calculating the Value of Ending Inventory and Cost of Goods Sold: Perpetual Method Total Units Unit Cost Total Cost Beginning inventory on hand 1-Jan 60,000 $2.00 $120,000 Purchases during month 5-Jan 103,600 $2.00 $207,200 20-Jan 293,900 $2.10 $617,190 Sales of inventory 25-Jan 383,900 Beginning inventory at 1-Feb 73,600 Purchases during month 8-Feb 282,200 $2.20 $620,840 23-Feb 153,500 $2.60 $399,100 Sales of inventory 27-Feb 407,600 Ending Inventory 101,700 LIFO Jan Feb Cost of goods sold Cost of goods sold Ending inventory...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT