Question

prepare the entries to recognize the following transactions for ABC Company with respect to Inventory Item # 1234

Date	Transaction	Quantity	Purchase Price	Selling Price
1/1/17	Beginning Inventory	1,500	$10
1/10/17	Purchase	2,500	$15
1/12/17	Sale	(3,000)		$30
1/19/17	Purchase	2,000	$20
1/23/17	Sale	(500)		$31
1/29/17	Sale	(1,700)		$34

Use separate T-account templates to prepare the entries under the following criteria:

a. Periodic system, FIFO cost flow method

b. Perpetual system, FIFO cost flow method

c. Periodic system, LIFO cost flow method

d. Perpetual system, LIFO cost flow method

Answer 1

a. Periodic system, FIFO cost flow method

Units Available for Sale	= 1500+2500+2000		6000
Units Sold	= 3000+ 500+ 1700		5200
Units in Ending Inventory	= 6000 - 5200		800

Cost of Goods Sold	Units	Unit Cost	Total
Sales From 1/1/17 Inventory	1500	$10.00	$15,000
Sales From 1/10/17 Purchase	2500	$15.00	$37,500
Sales From 1/19/17 Purchase	1200	$20.00	$24,000
	5200		$76,500
Ending Inventory	Units	Unit Cost	Total
Inventory From 1/19/17 Purchase	800	$20.00	$16,000

b). Perpetual system, FIFO cost flow method

FIFO Perpetual
Date	Purchases			Sales			Balance
	Units	Unit Cost	Total	Units	Unit Cost	Total	Units	Unit Cost	Total
01-01-2017							1500	$10.00	$15,000
01-10-2017	2500	$15.00	37500				1500	$10.00	$15,000
							2500	$15.00	37500
01-12-2017				1500	$10.00	15000	1000	$15.00	15000
				1500	$15.00	22500
1/19/17	2000	$20.00	40000				1000	$15.00	$15,000
							2000	$20.00	$40,000
1/23/17				500	$15.00	7500	500	$15.00	7500
							2000	$20.00	$40,000
1/29/17				500	$15.00	7500	800	$20.00	16000
				1200	$20.00	24000

c. Periodic system, LIFO cost flow method

Units Available for Sale	= 1500+2500+2000		6000
Units Sold	= 3000+ 500+ 1700		5200
Units in Ending Inventory	= 6000 - 5200		800

Cost of Goods Sold	Units	Unit Cost	Total
Sales From 1/10/17 Purchase	2500	$15.00	$37,500
Sales From 1/1/17 Inventory	500	$10.00	$5,000
Sales From 1/19/17 Purchase	2000	$20.00	$40,000
Sales From 1/1/17 Inventory	200	$10.00	$2,000
	5200		$84,500
Ending Inventory	Units	Unit Cost	Total
Inventory From 1/19/17 Purchase	800	$10.00	$8,000

d). Perpetual system, LIFO cost flow method

LIFO Perpetual
Date	Purchases			Sales			Balance
	Units	Unit Cost	Total	Units	Unit Cost	Total	Units	Unit Cost	Total
01-01-2017							1500	$10.00	$15,000
01-10-2017	2500	$15.00	37500				1500	$10.00	$15,000
							2500	$15.00	37500
01-12-2017				2500	$10.00	25000	1000	$10.00	10000
				500	$15.00	7500
1/19/17	2000	$20.00	40000				1000	$10.00	$10,000
							2000	$20.00	$40,000
1/23/17				500	$15.00	7500	1000	$10.00	$10,000
							1500	$20.00	$30,000
1/29/17				1500	$20.00	30000	800	$10.00	8000
				200	$10.00	2000
						72000