In: Accounting
4. You extracted the following info from WAN Co. regarding its inventory transactions for last three months. The Co. uses perpetual inventory system. Date Transactions # of Units Per Unit Total Oct 1 Inventory 2,500 $60.00 $150,000 Oct 10 Purchase 7,500 $68.00 $510,000 Oct 28 Sale 3,750 $120.00 $450,000 Oct 30 Sale 1,250 $120.00 $150,000 Nov 5 Sale 500 $120.00 $60,000 Nov10 Purchase 18,000 $70.00 $1,260,000 Nov16 Sale 9,000 $125.00 $1,125,000 Nov28 Sale 8,500 $125.00 $1,062,500 Dec 5 Purchase 15,000 $71.60 $1,074,000 Dec 14 Sale 10,000 $125.00 $1,250,000 Dec 25 Purchase 2,500 $72.00 $180,000 Dec 30 Sale 8,750 $125.00 $1,093,750 a. Record the inventory, purchases, and COGS data – using LIFO method. Follow Exhibit 5 in the book. 10 points b. Determine the total sales, total COGS, and gross profit for the period. 10 points c. Determine the ending inventory s of December 31.
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD | |||||||||
RECIEPTS | COST OF GOODS SOLD | BALANCE | |||||||
DATE | UNITS | RATE | AMOUNT $ | UNITS | RATE | AMOUNT $ | UNITS | RATE | AMOUNT $ |
1-Oct | 2500 | 60 | 150000 | ||||||
10-Oct | 7500 | 68 | 510000 | 2500 | 60 | 150000 | |||
7500 | 68 | 510000 | |||||||
28-Oct | 3750 | 68 | 255000 | 2500 | 60 | 150000 | |||
3750 | 68 | 255000 | |||||||
30-Oct | 1250 | 68 | 85000 | 2500 | 60 | 150000 | |||
2500 | 68 | 170000 | |||||||
5-Nov | 500 | 68 | 34000 | 2500 | 60 | 150000 | |||
2000 | 68 | 136000 | |||||||
10-Nov | 18000 | 70 | 1260000 | 2500 | 60 | 150000 | |||
2000 | 68 | 136000 | |||||||
18000 | 70 | 1260000 | |||||||
16-Nov | 9000 | 70 | 630000 | 2500 | 60 | 150000 | |||
2000 | 68 | 136000 | |||||||
9000 | 70 | 630000 | |||||||
28-Nov | 8500 | 70 | 595000 | 2500 | 60 | 150000 | |||
2000 | 68 | 136000 | |||||||
500 | 70 | 35000 | |||||||
5-Dec | 15000 | 71.6 | 1074000 | 2500 | 60 | 150000 | |||
2000 | 68 | 136000 | |||||||
500 | 70 | 35000 | |||||||
15000 | 71.6 | 1074000 | |||||||
14-Dec | 10000 | 71.6 | 716000 | 2500 | 60 | 150000 | |||
2000 | 68 | 136000 | |||||||
500 | 70 | 35000 | |||||||
5000 | 71.6 | 358000 | |||||||
25-Dec | 2500 | 72 | 180000 | 2500 | 60 | 150000 | |||
2000 | 68 | 136000 | |||||||
500 | 70 | 35000 | |||||||
5000 | 71.6 | 358000 | |||||||
2500 | 72 | 180000 | |||||||
30-Dec | 2500 | 72 | 180000 | ||||||
5000 | 71.6 | 358000 | |||||||
500 | 70 | 35000 | 2500 | 60 | 150000 | ||||
750 | 68 | 51000 | 1250 | 68 | 85000 | ||||
TOTAL | 43000 | 3024000 | 41750 | 2939000 | 3750 | 235000 | |||
Total sales: | |||||||||
28-Oct | 450000 | ||||||||
30-Oct | 150000 | ||||||||
5-Nov | 60000 | ||||||||
16-Nov | 1125000 | ||||||||
28-Nov | 1062500 | ||||||||
14-Dec | 1250000 | ||||||||
30-Dec | 1093750 | ||||||||
Ttotal sales | 5191250 | ||||||||
COGS: $2939,000 | |||||||||
Gross profit: Ssales -COGS = $ 5191,250 -2939,000 = $2252,250 | |||||||||
Ending Inventory: $235,000 |