Question

The following information pertains to Company A's Year 1 inventory activities:

Date	Transaction	Number of Units	Purchase price per unit	Sale price per unit
January 1	Beginning balance	90	$40
April 11	Sale	50		$70
May 15	Purchase	160	$65
July 25	Sale	30		$75

For each of the following independent assumptions regarding Company A's inventory cost flow methods, click on the associated designated cell and enter the applicable dollar value of inventory that would be reported in Company A's December 31, Year 1, balance sheet. Enter all amounts as positive values. Round all amounts to the nearest dollar. If the amount is zero, enter a zero (0).

Cost Flow Assumptions	Amount
1. First-in, first-out (FIFO) periodic
2. Moving average
3. Weighted average
4. Last-in, first-out (LIFO) periodic
5. First-in, first-out (FIFO) perpetual

Answer 1

Amount to be reported in the balance sheet will be the ending inventory of the company. Ending inventory under different methods will be as under:

Cost Flow Assumptions	Amount
1. First-in, first-out (FIFO) periodic	$10800
2. Moving average	$10200
3. Weighted average	$10200
4. Last-in, first-out (LIFO) periodic	$10050
5. First-in, first-out (FIFO) perpetual	$10800

Ending inventory & COGS will be same in case of FIFO perpetual and periodic methods

Ending inventory & COGS will be same in case of Moving average and weighted average methods

Notes

We can prepare the following tables to determine cost of goods sold and closing inventory

FIFO
	Beginning Inventory			Purchases			Sales / COGS			Ending Inventory
Date	Units	Price	Total	Units	Price	Total	Units	Price	Total	Units	Price	Total
Jan-01	90	40	3600							90	40	3600
Apr-11							50	40	2000	40	40	1600
May-15				160	65	10400				40	40	1600
										160	65	10400
Jul-25							30	40	1200	10	40	400
										160	65	10400
Total	90		3600	160		10400	80		3200	170		10800

LIFO
	Beginning Inventory			Purchases			Sales / COGS			Ending Inventory
Date	Units	Price	Total	Units	Price	Total	Units	Price	Total	Units	Price	Total
Jan-01	90	40	3600							90	40	3600
Apr-11							50	40	2000	40	40	1600
May-15				160	65	10400				40	40	1600
										160	65	10400
Jul-25							30	65	1950	40	40	1600
										130	65	8450
Total	90		3600	160		10400	80		3950	170		10050

Moving Average
	Beginning Inventory			Purchases			Sales / COGS			Ending Inventory
Date	Units	Price	Total	Units	Price	Total	Units	Price	Total	Units	Price	Total
Beg inv	90	40	3600							90	40.00	3,600.00
Apr-11							50	40	2000	-50	40.00	-2,000.00
Weighted Average Price										40	40.00	1,600.00
May-15				160	65	10400				160	65.00	10,400.00
Weighted Average Price										200	60.00	12000
Jul-25							30	60.00	1,800.00	-30	60.00	-1,800.00
Total	90		3600	160		10400	80		3,800.00	170		10200

Please comment in case of any issue and I will be happy to help.