Question

ACD Company was formed on December 1, 2018. The following information is available from ACD's inventory record for Product X.

                                                                                                               Units        Unit Cost

            January 1, 2019 (beginning inventory)                                      1,600             £18.00

            Purchases:

                  January 5, 2019                                                                    2,600             £20.00

                  January 25, 2019                                                                  2,400             £21.00

                  February 16, 2019                                                                1,000             £22.00

                  March 15, 2019                                                                    1,800             £23.00

A physical inventory on March 31, 2019, shows 2,500 units on hand.

Instructions

Prepare schedules assuming the periodic method to compute the 1/cost of goods sold and 2/the ending inventory at March 31, 2019, under each of the following inventory methods:

(a) FIFO.

(b) Weighted-average.

(c) LIFO.

Answer 1

	Units	Per unit	Cost
Opening Stock- A	1,600	18	28,800
Purchases-B
05/01/2019	2,600	20	52,000
25/01/2019	2,400	21	50,400
16/02/2019	1,000	22	22,000
15/03/2019	1,800	23	41,400
	7,800		1,65,800
Closing Stock- C	2,500
Sales- (A+B-C)	6,900
FIFO (In this method, sales is first utilised from opening stock and then 1st purchases onwards)
Particulars	Units	Per unit	Cost	Sales	Per unit	Cost
Opening Stock- A	1,600	18	28,800	1,600	18	28,800
Purchases-B
05/01/2019	2,600	20	52,000	2,600	20	52,000
25/01/2019	2,400	21	50,400	2,400	21	50,400
16/02/2019	1,000	22	22,000	300	22	6,600
15/03/2019	1,800	23	41,400
	7,800		1,65,800	5,300		1,09,000
Cost of Goods sold				6,900		1,37,800
Closing Stock- C
16/02/19-(1000-300)				700	22	15,400
1800				1,800	23	41,400
Closing Stock				2,500		56,800
Weighted Average (on the basis total value)
Particulars	Units	Per unit	Cost
Opening Stock- A	1,600	18	28,800
Purchases-B
05/01/2019	2,600	20	52,000
25/01/2019	2,400	21	50,400
16/02/2019	1,000	22	22,000
15/03/2019	1,800	23	41,400
Total Available for sale (194600/9400)	9,400	20.70	1,94,600
Cost of goods sold	6,900	20.70	1,42,845
Closing Stock	2,500	20.70	51,755
LIFO (In this method, sales is first utilised from last purchases onwards)
Particulars	Units	Per unit	Cost	Sales	Per unit	Cost
Opening Stock- A	1,600	18	28,800	-		-
Purchases-B
05/01/2019	2,600	20	52,000	1,700	20	34,000
25/01/2019	2,400	21	50,400	2,400	21	50,400
16/02/2019	1,000	22	22,000	1,000	22	22,000
15/03/2019	1,800	23	41,400	1,800	23	41,400
	7,800		1,65,800	6,900		1,47,800
Cost of Goods sold				6,900		1,47,800
Closing Stock- C	2,500
Op-1600				1,600	18	28,800
05/01/19-(2600-1700)				900	20	18,000
Closing Stock				2,500		46,800