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Using the Data below a) Prepare FIFO, LIFO, average valueto ending inventory. b) Prepare all entries...

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

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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

ekkarill92 answered 2 years ago
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