Question

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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) $__________ f) $__________

Perpetual FIFO g) $__________ h) $__________

Perpetual LIFO i) $__________ j) $__________

Perpetual Moving Average k) $__________ l) $__________

Solutions

Expert Solution

Ending Inventory Cost of Goods Sold
Periodic FIFO $ 56 $ 145
Periodic LIFO 42 159
Periodic Weighted Average 50.25 150.75
Perpetual FIFO 56 145
Perpetual LIFO 48 153
Perpetual Moving Average 53.72 147.28

Periodic FIFO:

Cost of goods available for sale = Beginning inventory + Purchases = $ 30 + $ 66 + $ 105 = $ 201

Ending inventory in units = Beginning inventory + Purchases - Units sold = 6 + 26 - 24 = 8 units

Ending inventory = 8 units @ $ 7 = $ 56

Cost of goods sold = $ 201 - $ 56 = $ 145

Periodic LIFO:

Ending inventory = 2 x $ 6 + 6 x $5 = $ 42

Cost of goods sold = $ 201 - $ 42 = $ 159

Periodic Weighted Average:

Weighted average cost per unit = $ 201 / 32 units = $ 6.28125

Cost of goods sold = 24 units @ $ 6.28125 = $ 150.75

Ending inventory = $ 201 - $ 150.75 = $ 50.25

Perpetual FIFO:

Purchases Cost of Goods Sold Inventory on Hand
Units Unit Cost Total Units Unit Cost Total Units Unit Cost Total
1/1 6 $ 5 $ 30
1/10 11 $ 6 66

6

11

5

6

30

66
1/15

6

7

5

6

30

42

 4 6 24
1/20 15 7 105

4

15

6

7

24

105
1/25

4

7

6

7

24

49

 8 7 56
145 56

Perpetual LIFO:

Purchases Cost of Goods Sold Inventory on Hand
Units Unit Cost Total Units Unit Cost Total Units Unit Cost Total
1/1 6 $ 5 $ 30
1/10 11 $ 6 $ 66

6

11

5

6

30

66
1/15

11

2

6

5

66

10

 4 5 20
1/20 15 7 105

4

15

5

7

20

105
1/25 11 7 77

4

4

5

7

20

28
153 48

Perpetual Moving Average:

Purchases Cost of Goods Sold Inventory on Hand
Units Unit Cost Total Units Unit Cost Total Units Unit Cost Total
1/1 6 $ 5 $ 30
1/10 11 $ 6 $ 66 11 6 66
17 5.6471 96
1/15 13 5.6471 73.4123 4 5.6471 22.5884
1/20 15 7 105 4 5.6471 22.5884
15 7 105
19 6.7152 127.5884
1/25 11 6.7152 73.8672 8 6.7152 53.7216

ekkarill92 answered 1 year ago
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