Question

Sceptre began 20X5 with 1,000 lbs of coffee. These units were purchased near the end of 20x4 for $100 each. During the month of January 1000 units were purchased on January 8 for $110 each and another 500 units were purchased on January 19 for $115 each. Sales of 500 units and 1,000 units were made on January 10 and January 25, respectively. Sceptre uses a periodic inventory system. Place your answer in the designated yellow box for each question. Show your work below the yellow boxes.

Required:

1. Calculate GOGS under a FIFO Method at the end of January

2. Calculate GOGS under an Avg Cost Method at the end of January

3. Calculate GOGS under a LIFO Cost Method at the end of January

4. Calculate ending inventory under a FIFO Method

5. Calculate ending inventory under an average cost Method

6. Calculate ending inventory under a LIFO cost Method

Answer 1

1.Calculation of cost of good sold and ending inventory :
Under FIFO Method
DATE	GOODS PURCHASED		COST OF GOOD SOLD			INVENTORY BALANCE
January 20x5	units	cost per unit	unit	cost per unit	cost of goods sold	units	cost per unit	inventory balance
Beg.						1000	100	100000
8-Jan	1000	100				1000	100	100000
						1000	100	100000
						1000	100	100000
10-Jan			500	100	50000	500	100	50000
						1000	100	100000
19-Jan	500	115				500	100	50000
						1000	100	100000
						500	115	57500
25-Jan			500	100	50000	500	100	50000
			500	100	50000	500	115	57500
Total	1500		1500	100	150000	500	100	50000
						500	115	57500
						1000		175000

Cost of good sold (COGS) under FIFO method at the end of January = $ 150000
Ending inventory under FIFO method =$ 175000

2..Calculation of cost of good sold and ending inventory :
Under LIFO Method
DATE	GOODS PURCHASED		COST OF GOOD SOLD			INVENTORY BALANCE
January 20x5	units	cost per unit	unit	cost per unit	cost of goods sold	units	cost per unit	inventory balance
Beg.						1000	100	100000
8-Jan	1000	100				1000	100	100000
						1000	100	100000
						1000	100	100000
10-Jan			500	100	50000	1000	100	100000
						500	100	50000
19-Jan	500	115				1000	100	100000
						500	100	50000
						500	115	57500
25-Jan			500	115	57500	500	100	100000
			500	100	50000
Total	1500		1500		225000	1000	100	100000

Cost of good sold (COGS) under LIFO method at the end of January = $ 225000
Ending inventory under LIFO method =$ 100000

3..Calculation of cost of good sold and ending inventory :
Under WEIGHTED AVERAGE Method
DATE	GOODS PURCHASED		COST OF GOOD SOLD			INVENTORY BALANCE
January 20x5	units	cost per unit	unit	cost per unit	cost of goods sold	units	cost per unit	inventory balance
Beg.						1000	100	100000
8-Jan	1000	100				1000	100	100000
						2000	100	200000
10-Jan			500	100	50000	1500	100	150000
19-Jan	500	115				1500	100	150000
						500	115	57500
						2000	112.5	225000
25-Jan			1000	113	112500	1000	112.5	112500
Total	1500		1500	100	162500	1000	112.5	112500

Cost of good sold (COGS) under WEIGHTED AVERAGE   method at the end of January = $ 162500
Ending inventory under WEIGHTED AVERAGE method =$ 112500