Question

In: Accounting

Botter Company had a beginning inventory of 200 units at a cost of $13 per unit...

Botter Company had a beginning inventory of 200 units at a cost of $13 per unit on August 1. During the month, the following purchases and sales were made.

Purchases

Sales

August

4

250 units at $14

August

7

150 units

August

15

350 units at $15

August

11

100 units

August

28

200 units at $16

August

17

300 units

August

24

200 units

Botter uses a periodic inventory system.

Instructions

Determine ending inventory and cost of goods sold under (a) FIFO, and (b) LIFO.

(a)

FIFO:

Ending inventory = $_____________; cost of goods sold = $____________.

(b)

LIFO:

Ending inventory = $_____________; cost of goods sold = $____________.

please show work.

Solutions

Expert Solution

As Per FIFO
Date Cost of Goods Available for sale Cost of Goods Sold Ending Inventory
Units Rate Amount Units Rate Amount Units Rate Amount
1-Aug 200 $13.00 $2,600.00 200         13.00 $2,600.00
4-Aug 250 $14.00 $3,500.00 200         13.00 $2,600.00
250 $14.00 $3,500.00
7-Aug 150 $13.00 $1,950.00 50         13.00 $650.00
250 $14.00 $3,500.00
11-Aug 50         13.00 $650.00
50 $14.00 $700.00 200 $14.00 $2,800.00
15-Aug 350 $15.00 $5,250.00 200 $14.00 $2,800.00
350 $15.00 $5,250.00
17-Aug 200 $14.00 $2,800.00
100 $15.00 $1,500.00 250 $15.00 $3,750.00
24-Aug 200 $15.00 $3,000.00 50 $15.00 $750.00
28-Aug 200 $16.00 $3,200.00 50 $15.00 $750.00
200 $16.00 $3,200.00
750 10600 250 $3,950.00
As Per LIFO
Date Cost of Goods Available for sale Cost of Goods Sold Ending Inventory
Units Rate Amount Units Rate Amount Units Rate Amount
1-Aug 200 $13.00 $2,600.00 200         13.00 $2,600.00
4-Aug 250 $14.00 $3,500.00 200         13.00 $2,600.00
250 $14.00 $3,500.00
7-Aug 150 $14.00 $2,100.00 200         13.00 $2,600.00
100 $14.00 $1,400.00
11-Aug 100         14.00 $1,400.00 200 $13.00 $2,600.00
15-Aug 350 $15.00 $5,250.00 200 $13.00 $2,600.00
350 $15.00 $5,250.00
17-Aug 300 $15.00 $4,500.00 200 $13.00 $2,600.00
50 $15.00 $750.00
24-Aug 150 $13.00 $1,950.00 50 $13.00 $650.00
50 $15.00 $750.00
28-Aug 200 $16.00 $3,200.00 50 $13.00 $650.00
200 $16.00 $3,200.00
750 10700 250 $3,850.00

Related Solutions

Elston Company had a beginning inventory of 200 units at a cost of rm12 per unit...
Elston Company had a beginning inventory of 200 units at a cost of rm12 per unit on August 1. During the month, the following purchases and sales were made.             Purchases                                           ______________Sales     ________            August 4     250 units at RM13/unit                   August      7          150 units @ RM20 August 15   350 units at RM15/unit                   August      11        100 units @ RM20 August 28   200 units at RM14/unit                   August      17        250 units @ RM25                                                                           August      24        260 units @...
Please answer asap Elston Company had a beginning inventory of 200 units at a cost of...
Please answer asap Elston Company had a beginning inventory of 200 units at a cost of rm12 per unit on August 1. During the month, the following purchases and sales were made.             Purchases                                           ______________Sales     ________            August 4     250 units at RM13/unit                   August      7          150 units @ RM20 August 15   350 units at RM15/unit                   August      11        100 units @ RM20 August 28   200 units at RM14/unit                   August      17        250 units @ RM25                                                                           August      24       ...
Units Per unit cost Beginning Inventory 200 $      120.00 $   24,000.00 30-Jan purchase 130 $      124.00...
Units Per unit cost Beginning Inventory 200 $      120.00 $   24,000.00 30-Jan purchase 130 $      124.00 $   16,120.00 12-Mar purchase 220 $      128.00 $   28,160.00 Total Sales 350 $      320.00 $ 112,000.00 Ending Inventory FIFO LIFO Ending Inventory Ending Inventory Goods Available for Sale Goods Available for Sale Deduct ending Inventory Deduct ending Inventory Cost of Goods Sold Cost of Goods Sold Sales Sales Cost of Goods Sold Cost of Goods Sold Gross Profit Gross Profit Operating Expense $ 24,000.00...
The beginning inventory was 320 units at a cost of $10 per unit. Goods available for...
The beginning inventory was 320 units at a cost of $10 per unit. Goods available for sale during the year were 1,360 units at a total cost of $15,060. In May, 620 units were purchased at a total cost of $6,820. The only other purchase transaction occurred during October. Ending inventory was 580 units. Required: a. Calculate the number of units purchased in October and the cost per unit purchased in October. b-1. Assume the periodic inventory system is used....
Beginning Inventory # of units Cost per unit Total Beginning Inventory 15 $10 $150 Jan 1....
Beginning Inventory # of units Cost per unit Total Beginning Inventory 15 $10 $150 Jan 1. Purchase 15 $11 $165 Jan 10. Purchase 15 $12 $180 Total 45 1. During January, AA sold 20 units at $30 per unit. Under FIFO, how much is the Gross Profit? $365 $380 $390 $395 2. During January, AA sold 20 units at $30 per unit Under the Weighted Average Method, how much is the Gross Profit?. $365 $380 $395 $400 3. During January,...
Ella Company had 160 units in beginning inventory at a total cost of $320. The company...
Ella Company had 160 units in beginning inventory at a total cost of $320. The company purchased 400 units at a total cost of $1,500. At the end of the year, Ella had 120 units in ending inventory Beginning 160 units ($2.00) $ 320 Purchases 500 units ($3.00) 1,500 Cost of goods available for sale $1,820 A physical count of ending inventory on June 30 reveals that there are 100 units on hand. REQUIREMENTS: Calculate the cost of ending inventory...
4. Sylvia's Designs Co. had the following inventory activity during April: Units Unit Cost Beginning inventory...
4. Sylvia's Designs Co. had the following inventory activity during April: Units Unit Cost Beginning inventory 100 $10 Purchase (April 3) 50 12 Sale (April 10) 80 Purchase (April 18) 40 14 Purchase (April 23) 60 15 Sale (April 28) 120 Assuming Sylvia's uses a perpetual LIFO cost flow assumption, ending inventory for April would be a. $ 750 b. $2,560 c. $ 500 d. $2,310
Sekhon company had a beginning inventory on January 1 of 200 units of product 4-18-15 at...
Sekhon company had a beginning inventory on January 1 of 200 units of product 4-18-15 at cost of $20 per unit. During the year, the following purchases were made. Mar. 15 500 units at $21, July 20 313 units at $22 Sept. 4 413 units at $27. Dec. 2. 125 units at $31 1250 units were sold. Sekhon Company uses a periodic inventory system. 1. Determine the cost of good available for sale. 2. Calculate average cost per unit. 3....
Groves Company Inc. had a beginning inventory of 300 units of Product MLN at a cost...
Groves Company Inc. had a beginning inventory of 300 units of Product MLN at a cost of $8 per unit. During the year, purchases were: Feb. 20 700 units at $9 Aug. 12 600 units at $11 May 5 500 units at $10 Dec. 8 100 units at $12 Groves Company uses a periodic inventory system. Sales totaled 1,800 units. Instructions: (a) determine the cost of goods available for sale. (b) Determine the ending inventory and the cost of goods...
AU Company has the following inventory transactions for the month of March: Units Unit Cost Beginning,...
AU Company has the following inventory transactions for the month of March: Units Unit Cost Beginning, Mar. 1 10,000 15 Purchases, Mar. 10 20,000 18 Sold, Mar. 15 15,000 Purchases, Mar. 18 5,000 23 Sold, Mar. 25 6,000 The company uses the perpetual inventory system. Determine the cost of inventory on March 31 and cost of goods sold under: Inventory Cost Flow Ending Inventory Cost of Goods Sold First in, first out (FIFO) Moving Average Last in, first out (LIFO)
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT