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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 Ending inventory

Solutions

Expert Solution

LIFO
Jan Feb
Cost of goods sold $       797,190 Cost of goods sold $       958,120
Ending inventory $       147,200 Ending inventory $       209,020

Working:

Date Purchases Cost of Goods Sold Inventory on Hand
QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost
01-Jan 60000 $       2.00 120000
05-Jan 103600 $       2.00 207200 60000 $       2.00 120000
103600 $       2.00 207200
20-Jan 293900 $       2.10 617190 60000 $       2.00 120000
103600 $       2.00 207200
293900 $       2.10 617190
25-Jan 293900 $       2.10 617190 60000 $       2.00 120000
90000 $       2.00 180000 13600 $       2.00 27200
Total 397500 824390 383900 797190 73600 147200
01-Feb 60000 $       2.00 120000
13600 $       2.00 27200
08-Feb 282200 $       2.20 620840 60000 $       2.00 120000
13600 $       2.00 27200
282200 $       2.20 620840
23-Feb 153500 $       2.60 399100 60000 $       2.00 120000
13600 $       2.00 27200
282200 $       2.20 620840
153500 $       2.60 399100
27-Feb 153500 $       2.60 399100 60000 $       2.00 120000
254100 $       2.20 559020 13600 $       2.00 27200
28100 $       2.20 61820
Total 435700 1019940 407600 958120 101700 209020

ekkarill92 answered 3 years ago
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