Question

I.          Cost Flow Assumptions

RennStall made the following purchases and sales of a particular product:

Date                            Purchases at Cost   Total Cost                  Sales at Retail          Total Retail

Begin Inventory        100 x $35 =

8/6                              200 x $40 =

8/10                                                                                                    150 x $100 =

8/15                                                                                                    50 x $100 =

8/22                            250 x $45 =

8/23                                                                                                    160 x $100 =

8/31                                                                                                    50 x $100 =                        

            Totals                         units                                                                                                 

III.        Periodic Method

For the month of August, compute the value of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, (c) Weighted Average, and (d) Specific Identification. The units physically remaining are all from the August 6 purchase which cost $40 each.

Answer 1

FIFO Periodic
	Available for sale	Cost of goods sold	Ending Inventory
Purchase Date	Activity	Units	Unit Cost	Units available	Units sold	Unit cost	COGS	Ending Inventory units	Cost per unit	Ending Inventory cost
	Beginning Inventory	100	35	3500	100	35	3500
Jun-06	Purchases	200	40	8000	200	40	8000
Jun-22	Purchases	250	45	11250	110	45	4950	140	45	6300
	Total	550		22750	410		16450	140		6300
LIFO Periodic
	Available for sale	Cost of goods sold	Ending Inventory
Purchase Date	Activity	Units	Unit Cost	Units available	Units sold	Unit cost	COGS	Ending Inventory units	Cost per unit	Ending Inventory cost
	Beginning Inventory	100	35	3500	0	0	0	100	35	3500
Jun-06	Purchases	200	40	8000	160	40	6400	40	40	1600
Jun-22	Purchases	250	45	11250	250	45	11250
	Total	550		22750	410		17650	140		5100
Weighted Average
	Available for sale	Cost of goods sold	Ending Inventory
Purchase Date	Activity	Units	Unit Cost	Units available	Units sold	Unit cost	COGS	Ending Inventory units	Cost per unit	Ending Inventory cost
	Beginning Inventory	100	35	3500	100	41.36	4136
Jun-06	Purchases	200	40	8000	200	41.36	8273
Jun-22	Purchases	250	45	11250	110	41.36	4550	140	41.36	5791
	Total	550	41.36	22750	410		16959	140		5791
Special Identification
	Available for sale	Cost of goods sold	Ending Inventory
Purchase Date	Activity	Units	Unit Cost	Units available	Units sold	Unit cost	COGS	Ending Inventory units	Cost per unit	Ending Inventory cost
	Beginning Inventory	100	35	3500	100	35	3500
Jun-06	Purchases	200	40	8000	60	40	2400	140	40	5600
Jun-22	Purchases	250	45	11250	250	45	11250
	Total	550		22750	410		17150	140		5600
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