Question

Specific Identification, FIFO, LIFO, and Weighted-Average

Swing Company's beginning inventory and purchases during the fiscal year ended September 30, 20-2, were as shown.

		Units	Unit Price	Total Cost
October 1, 20-1	Beginning inventory	450	$19.00		$8,550
October 18	1st purchase	520	19.50		10,140
November 25	2nd purchase	190	20.50		3,895
January 12, 20-2	3rd purchase	340	21.50		7,310
March 17	4th purchase	900	22.50		20,250
June 2	5th purchase	840	23.00		19,320
August 21	6th purchase	200	23.50		4,700
September 27	7th purchase	660	24.50		16,170
		4,100			$90,335

Use the following information for the specific identification method.

There are 1,300 units of inventory on hand on September 30, 20-2. Of these 1,300 units:

100 are from October 18, 20-1	1st purchase
200 are from January 12, 20-2	3rd purchase
100 are from March 17	4th purchase
400 are from June 2	5th purchase
200 are from August 21	6th purchase
300 are from September 27	7th purchase

Required:

Calculate the total amount to be assigned to cost of goods sold for the fiscal year ended September 30, 20-2, and ending inventory on September 30, 20-2, under each of the following periodic inventory methods.

	Cost of Goods Sold	Cost of Ending Inventory
1. FIFO	$	$
2. LIFO	$	$
3. Weighted-average (round calculations to two decimal places)	$	$
4. Specific identification	$	$

Answer 1

Particulars	COGS	Closing Inventory
LIFO method	$64,740	$25,595
FIFO method	$59775	$30,560
Weighted Average method	$61,692	$28,643
Specific Identification Method	$60,585	$29,750

Working Note

Closing Stock in Specific Identification

Date of purchase of inventory	Particulars	Unit	Rate per unit ($)	Amount ($)	Unit in Closing stock	Value of Closing Stock ($)
1.Oct.20-1	Beginning Inventory	450	$19.00	$8,550		$0
18.Oct.20-1	1st purchase	520	19.50	10,140	100	$1,950
15.Nov.20-1	2nd purchase	190	20.50	3,895		$0
12.Jan.20-2	3rd purchase	340	21.50	7,310	200	$4,300
17.Mar.20-2	4th purchase	900	22.50	20,250	100	$2,250
2.Jun.20-2	5th purchase	840	23.00	19,320	400	$9,200
21.Aug.20-2	6th purchase	200	23.50	4,700	200	$4,700
27.Sep.20-2	7th purchase	660	24.50	16,170	300	$7,350
		4,100		$90,335	1300	29750
Cost of goods sold in Specific Identification method	$90,335-29750
	$60,585

Value of stock in Closing Stock in LIFO Method
Date of purchase of inventory	Particulars	Unit in closing stock	Rate per unit ($)	Amount ($)
1.Oct.20-1	Beginning Inventory	450	19.00	8550
18.Oct.20-1	1st purchase	520	19.50	10140
15.Nov.20-1	2nd purchase	190	20.50	3895
12.Jan.20-2	3rd purchase	140	21.50	3010
		1300		25595
Cost of goods sold in LIFO Method		(90,335- 25595)
		$64,740

Value of stock in Closing Stock in FIFO Method
Date of purchase of inventory	Particulars	Unit in closing stock	Rate per unit ($)	Amount ($)
27.Sep.20-2	7th purchase	660	24	15840
21.Aug.20-2	6th purchase	200	23	4600
2.Jun.20-2	5th purchase	440	23	10120
				0
		1300		30560
Cost of goods sold in FIFO Method	(90,335-30560)
	$59775

Value of stock in Closing Stock in Weighted Average Method	Closing Stock in unit ( total value of stock purchased/ Number of unit purchased))
	1,300*(90,335/4,100)
	$28,643
Cost of goods sold in Weighted average Method	90,335-28,643
	$61,692