Question

A company that uses the PERPETUAL inventory system has the following records for 2017

Beginging inventory		Units	Unit cost
Purcahses:		120	$48
	Febuary 8th	60	52
	June 15th	70	54
	22-Aug	55	57
	Novemeber 29	45	61
Salkes:	30-Mar	145
	20-Jul	90
	December 15th	60

Please compute the cost of ending inventory and the cost of goods sold using the follow methods: Please also show all steps/work

A) FIFO

B) Weighted Average

c) LIFO

Answer 1

(a)FIFO METHOD INVENTORY SCHEDULE

Date	Qty Purchased	Unit Cost	Total Cost	Qty Sold	Unit cost	Cost of goods sold	Ending Inv.Qty	Unit Cost	Total Inventory
Opening							120	48	5760
Feb	60	52	3120				120	48	5760
							60	52	3120
Mar				120	48	5760	35	52	1820
				25	52	1300
June	70	54	3780				35	52	1820
							70	54	3780
July				35	52	1820	15	54	810
				55	54	2970
Aug	55	57	3135				15	54	810
							55	57	3135
Nov	45	61	2745				15	54	810
							55	57	3135
							45	61	2745
Dec				15	54	810	10	57	570
				45	57	2565	45	61	2745
TOTAL						15225	55		3315

Ending Inventory Balance      =       $3,315

Total Cost of goods sold        =        $15,225

(b)WEIGHED AVERAGE METHOD INVENTORY SCHEDULE

Date	Qty Purchased	Unit Cost	Total Cost	Qty Sold	Unit cost	Cost of goods sold	Ending Inv.Qty	Unit Cost	Total Inventory
Opening							120	48	5760
Feb	60	52	3120				120	48	5760
							60	52	3120
Mar				145	49.33	7153	35	49.33	1727
June	70	54	3780				35	49.33	1727
							70	54	3780
July				90	52.45	4720	15	52.45	787
Aug	55	57	3135				15	52.45	787
							55	57	3135
Nov	45	61	2745				15	52.45	787
							55	57	3135
							45	61	2745
Dec				60	58	3480	55	58	3190
TOTAL						15353	55		3190

Mar Weighted Average Cost = (5760+3120)/180 = 49.33

July Weighted Average Cost = (1727+3780)/105= 52.45

Dec Weighted Average Cost = (787+3135+2745)/115= 58

Ending Inventory Balance      =       $3,190

Total Cost of goods sold        =        $15,353

(c)LIFO METHOD INVENTORY SCHEDULE

Date	Qty Purchased	Unit Cost	Total Cost	Qty Sold	Unit cost	Cost of goods sold	Ending Inv.Qty	Unit Cost	Total Inventory
Opening							120	48	5760
Feb	60	52	3120				120	48	5760
							60	52	3120
Mar				60	52	3120	35	48	1680
				85	48	4080
June	70	54	3780				35	48	1680
							70	54	3780
July				70	54	3780	15	48	720
				20	48	960
Aug	55	57	3135				15	48	720
							55	57	3135
Nov	45	61	2745				15	48	720
							55	57	3135
							45	61	2745
Dec				45	61	2745	15	48	720
				15	57	855	40	57	2280
TOTAL						15540	55		3000

Ending Inventory Balance      =       $3,000

Total Cost of goods sold         =       $15,540