In: Accounting
Using the Data below a) Prepare FIFO, LIFO, average valueto ending inventory. b) Prepare all entries for either FIFO or LIFO – including closing entries Use periodic inventory March 1 – Had 2,200 liters at $.63 each March 3 – Purchased 2,550 liters at .70 each March 5 SOLD 2,400 at $1.10 March 11 Purchased 4,100 liters at .74 each March 20 Purchased 2,600 liters at .80 each March 30 Sold 5,500 liters for $1.25
Stock statement onFIFO basis | |||||||||
Purchase | Cost of Goods Sold | Ending Inventory | |||||||
Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
01-Mar | 2,200 | $0.63 | $1,386.00 | ||||||
03-Mar | 2550 | $0.70 | $1,785.00 | 2,200 | $0.63 | $1,386.00 | |||
2550 | $0.70 | $1,785.00 | |||||||
05-Mar | 2200 | 0.63 | 1386 | ||||||
200 | $0.70 | 140 | 2350 | 0.7 | 1645 | ||||
11-Mar | 4,100 | $0.74 | $3,034.00 | 2350 | 0.7 | 1645 | |||
4,100 | $0.74 | $3,034.00 | |||||||
20-Mar | 2600 | 0.8 | 2080 | 2350 | 0.7 | 1645 | |||
4,100 | $0.74 | $3,034.00 | |||||||
2600 | 0.8 | 2080 | |||||||
30-Mar | 2350 | 0.7 | 1645 | 950 | $0.74 | 703 | |||
3150 | 0.74 | 2331 | 2600 | 0.8 | 2080 | ||||
9,250 | $6,899.00 | 7,900 | $5,502.00 | 3,550 | $2,783.00 |
Stock statement on LIFO basis | |||||||||
Purchase | Cost of Goods Sold | Ending Inventory | |||||||
Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
01-Mar | 2,200 | $0.63 | $1,386.00 | ||||||
03-Mar | 2550 | $0.70 | $1,785.00 | 2,200 | $0.63 | $1,386.00 | |||
2550 | $0.70 | $1,785.00 | |||||||
05-Mar | 2400 | 0.7 | 1680 | 2,200 | $0.63 | $1,386.00 | |||
150 | 0.7 | 105 | |||||||
11-Mar | 4,100 | $0.74 | $3,034.00 | 2,200 | $0.63 | $1,386.00 | |||
150 | 0.7 | 105 | |||||||
4,100 | $0.74 | $3,034.00 | |||||||
20-Mar | 2600 | 0.8 | 2080 | 2,200 | $0.63 | $1,386.00 | |||
150 | 0.7 | 105 | |||||||
4100 | 0.74 | 3034 | |||||||
2600 | 0.8 | 2080 | |||||||
30-Mar | 2600 | 0.8 | 2080 | 2,200 | $0.63 | $1,386.00 | |||
2900 | 0.7 | 2030 | 150 | 0.7 | 105 | ||||
1200 | 0.74 | 888 | |||||||
9,250 | $6,899.00 | 7,900 | $5,790.00 | 3,550 | $2,379.00 |
Stock statement on Average basis | |||||||||
Purchase | Cost of Goods Sold | Ending Inventory | |||||||
Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
01-Mar | 2,200 | $0.63 | $1,386.00 | ||||||
03-Mar | 2550 | $0.70 | $1,785.00 | 4,750 | $0.67 | $3,171.00 | |||
05-Mar | 2400 | $0.67 | $1,602.19 | 2,350 | $0.67 | $1,568.81 | |||
11-Mar | 4,100 | $0.74 | $3,034.00 | 6,450 | $0.71 | $4,602.81 | |||
20-Mar | 2600 | 0.8 | 2080 | 9,050 | $0.74 | $6,682.81 | |||
30-Mar | 5500 | $0.74 | 4061.377 | 3,550 | $0.74 | $2,621.43 | |||
9,250 | $6,899.00 | 7,900 | $5,663.57 | 3,550 | $0.74 | $2,621.43 |
Journal Entry ( On FIFO Basis) | |||
Date | Account Tittle & Explanation | Debit | Credit |
03-Mar | Inventory | $1,785 | |
Account Payable/Cash | $1,785 | ||
To Record Purchase of 2550 Litre | |||
05-Mar | Account Recievable/Cash | $2,640 | |
Sales | $2,640 | ||
To Record Sales of 2400 Litre @$1.10 | |||
05-Mar | Cost of Goods Sold | $1,526 | |
Inventory | $1,526 | ||
To Record Cost of Goods Sold | |||
11-Mar | Inventory | $3,034 | |
Account Payable/Cash | $3,034 | ||
To Record Purchase of 4100 Litre | |||
20-Mar | Inventory | $2,080 | |
Account Payable/Cash | $2,080 | ||
To Record Purchase of 2600 Litre | |||
05-Mar | Account Recievable/Cash | $6,875 | |
Sales | $6,875 | ||
To Record Sales of 5500 Litre @$1.25 | |||
30-Mar | Cost of Goods Sold | $3,976 | |
Inventory | $3,976 | ||
To Record Cost of Goods Sold |