Question

3 Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the 4 month of January 2019, the number of gadgets purchased and sold was as follows: Purchased Sold Balance in inventory Date Units Unit cost Total $ Units Unit cost Total $ Total $ Units Unit cost 200 $2/ Jan. 1 3 400 400 $5 700 10 15 300 20 300 27 400 $7 17 Units were sold for the following amount: June 10 $11 June 27 $12 21 *for specific identification, units sold on June 10 came from: 22 Opening inventory 23 Jan. 3 purchase 380 24 Jan. 8 purchase 320 700 27 **for specific identification, units sold on June 20 came from: 28 Opening inventory 29 Jan. 3 purchase 30 Jan. 8 purchase 60 31 Jan. 15 purchase 240 300

Needs to be done on an excel with fifo, lifo, specific identification, weighted average, journal entries, and cogs plus ending inventory seperated and filled out.

Answer 1

Answer-1:

FIFO COST METHOD Sold Unit Rate Purchased Rate Total Date Unit Total Unit Jan.01 Jan.03 400 $ 3$ 1,200 Balance in inventory Rate Total 200 $ 2 $ 400 200 $ 2 $ 400 400 $ 3 $ 1,200 600 $1,600 200 $ 2 $ 400 400 $ 3 $ 1,200 400 $ 5 $ 2,000 1000 $ 3,600 Jan.08 400 $ 5 $ 2,000 - Jan.10 200 $ 400 $ 100 $ 700 2 $ 3 $ 5 $ $ 400 1,200 500 2,100 300 $ 5 $ 1,500 Jan.15 300 $ 7 $ 2,100 -Jan.20 300 $ 5 $ 1,500 300 $ 300 $ 600 300 $ 300 $ 400 $ 700 5 $ 1,500 7 $ 2,100 $ 3,600 7 $ 2,100 7 $ 2,100 7 $ 2,800 $ 4,900 Jan.27 400 $ 7 $ 2,800 TOTAL COGS $ 3,600

LIFO COST METHOD Sold Unit Rate Purchased Rate Total Date Unit Total Unit Jan.01 Jan.03 400 $ 3 $ 1,200 Jan.08 400 $ 5$ 2,000 Jan.10 400 $ 300 $ 700 5 $ 3 $ $ 2,000 900 2,900 Balance in inventory Rate Total 200 $ 2 $ 400 200 $ 2 $ 400 400 $ 3$ 1,200 600 $1,600 200 $ 2 $ 400 400 $ 3 $ 1,200 400 $ 5 $ 2,000 1000 $ 3,600 200 $ 2 $ 400 100 $ 3 $ 300 300 $ 700 200 $ 2 $ 400 100 $ 3 $ 300 300 $ 7 $ 2,100 600 $ 2,800 200 $ 2 $ 400 100 $ 3 $ 300 300 $ 700 200 $ 2 $ 400 100 $ 3 $ 300 400 $ 7 $ 2,800 700 $ 3,500 Jan. 15 300 $ 7 $ 2,100 Jan.20 300 $ 7$ 2,100 Jan.27 400 $ 7 $ 2,800 TOTAL COGS $ 5,000

SPECIFIC IDENTIFICATION COST METHOD Purchased Sold Rate Total Unit Rate Total Date Unit Unit Jan.01 Jan.03 400 $ 3 $ 1,200 Jan.08 400 $ 5 $ 2,000 Jan.10 380 $ 320 $ 700 3 $ 5 $ $ 1,140 1,600 2,740 Balance in inventory Rate Total 200 $ 2 $ 400 200 $ 2 $ 400 400 $ 3 $ 1,200 600 $1,600 200 $ 2 $ 400 400 $ 3 $ 1,200 400 $ 5 $ 2,000 1000 $ 3,600 200 $ 2 $ 400 20$ 3 $ 60| 80 $ 5 $ 400 300 I 200 $ 2 $ 400 20 $ 3 $ 60 80 $ 5 $ 400 300 $ 7 $ 2,100 600 $ 2,960 200 $ 2 $ 400 20 $ 3$ 60 20 $ 5 $ 100 60 $ 7 $ 420 300 $ 7 $ 980 200 $ 2 $ 400 20 $ 3 $ 60 20 $ 5 $ 100 60 $ 7 $ 420 400 $ 7 $ 2,800 700 $ 3,780 Jan.15 300 $ 7 $ 2,100 Jan.20 60 $ 240 $ 300 5 $ 7 $ $ 300 1,680 1,980 Jan.27 400 $ 7 $ 2,800 TOTAL COGS $ 4,720

WEIGHTED AVERAGE COST METHOD Purchased Sold Rate Total Unit Rate Total Date Unit Unit 400 $ 400 $ 3 $ 1,200 5$ 2,000 Jan.01 Jan.03 Jan.08 Jan.10 Jan.15 Jan. 20 Jan.27 Balance in inventory Rate Total 200 $ 2 $ 400 600 $ 2.67 $ 1,600 1000 $ 3.60 $ 3,600 300 $ 3.60 $ 1,080 600 $ 5.30 $ 3,180 300 $ 5.30 $ 1,590 700 $ 6.27 $ 4,390 700 $ 3.60 $ 2,520 300 $ 7 $ 2,100 300 $ 5.30 $ 1,590 400 $ 7 $ 2,800 COGS $ 4,110

Answer-2:

Credit Date Jan.03 General Journal Inventory Account payable Debit $ 1,200 $ 1,200 Jan.08 2,000 Inventory Account payable 2,000 Jan. 10 7,700 Account receivable Sales 7,700 Jan.10 2,100 Cost of goods sold Inventory 2,100 Jan. 15 2,100 Inventory Account payable 2,100 Jan. 20 3,600 Account receivable Sales 3,600 Jan.20 1,500 Cost of goods sold Inventory 1,500 Jan.27 2,800 Inventory Account payable 2,800

Answer-3:

FIFO LIFO Wtd. Avg. Spec Ident. $ 4,720 $ 3,780.0 $ $ COGS Ending Inv. 3,600 4,900 5,000 3,500 4,110 4,390.0