Question

Homework Question: - Fahed Co incurred the following transactions during the month of December 2019 December 1: Beginning Inventory (100 units @5 per unit) December 6: Purchased 50 [email protected] per unit. December 10: Purchased 30 [email protected] per unit. December 13: Sold 130 units@ 12 per unit. December 15 Sold 45 units@ 12.50 per unit. December 19 Purchased 120 [email protected] per unit December 22: Sold 80 units@ 12.25 per unit. December 25 Sold 30 units@ 13 per unit. December 30: Purchased 90 units@ 5.75 per unit December 31: Sold 80 units@ 11.50 per unit. Required: You have to use "Average" and "FIFO" methods and calculate the following: i Calculate cost of ending inventory on December 31, 2019 i. Calculate cost of goods sold for the period ending on December 31, 2019 i. Calculate gross profit for the period ending on December 31, 2019

please use table format for Dec 1 - Dec 31

Answer 1

Avg Method
Date	Particulars (A)	Units (B)	Rate (C)	Amount (D)	Sales Rate (E )	Sales Amount (F)	Remarks
	Beg Inventory	100	5.00	500.00
06-Dec	Purchases	50	5.50	275.00
10-Dec	Purchases	30	5.25	157.50
		180	5.18	932.50
13-Dec	Sold	-130	5.18	-673.47	12	1,560	Coloumn 'C' Contain cost only
15-Dec	Sold	-45	5.18	-233.13	12.5	563	Coloumn 'C' Contain cost only
		5	5.18	25.90
19-Dec	Purchases	120	4.75	570.00
		125	4.77	595.90
22-Dec	Sold	-80	4.77	-381.38	12.25	980	Coloumn 'C' Contain cost only
25-Dec	Sold	-30	4.77	-143.02	13	390	Coloumn 'C' Contain cost only
		15	4.77	71.51
30-Dec	Purchases	90	5.75	517.50
		105	5.61	589.01
31-Dec	Sold	-80	5.61	-448.77	11.5	920	Coloumn 'C' Contain cost only
		25	5.61	140.24		4412.5
i	Cost of Ending Inventory		140.24
ii	Cost of Goods sold (Total of 'D' coloumn for sold item)		1,879.76
iii	Gross Profit (Sales of Coloumn 'F' - COGS in (ii))		2,532.74
FIFO Method
Date	Particulars (A)	Sales Unit	Units	Rate (C)	Amount (D)	Sales Rate (E )	Sales Amount (F)
	Beg Inventory	100	100	5.00	500.00
06-Dec	Purchases	50	50	5.50	275.00
10-Dec	Purchases	30	30	5.25	157.50
		180	180		932.50
13-Dec	Sold	-130	-100	5.00	-500.00	12	1,200
			-30	5.50	-165.00	12	360
15-Dec	Sold	-45	-20	5.50	-110.00	12.5	250
			-25	5.25	-131.25	12.5	313
		5	5		26.25
19-Dec	Purchases	120	120	4.75	570.00
		125	125		596.25
22-Dec	Sold	-80	-5	5.25	-26.25	12.25	61
			-75	4.75	-356.25	12.25	919
25-Dec	Sold	-30	-30	4.75	-142.50	13	390
		15	15		71.25
30-Dec	Purchases	90	90	5.75	517.50
		105	105		588.75
31-Dec	Sold	-80	-15	4.75	-71.25	11.5	173
			-65	5.75	-373.75	11.5	748
		25	25		143.75		4412.5
i	Cost of Ending Inventory		143.75
ii	Cost of Goods sold (Total of 'D' coloumn for sold item)		1,876.25
iii	Gross Profit (Sales of Coloumn 'F' - COGS in (ii))		2,536.25