Question

Help Save & Exit Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 50 units at $75 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 218 unit purchase at $85 per unit, the second was a 236-unit purchase at $90 per unit. During the period, it sold 340 chairs, Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses! a. FIFO FIFO Units Unit Cost Cost of Goods Sold S 0 11 Total 0

Answer 1

FIFO METHDO
		COST OF GOODS AVAILABLE FOR SALE			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	No. of Units	Cost Per unit	Total	No. of Units	Cost Per unit	Cost of Goods Sold	No. of Units	Cost Per unit	Ending invetory
-------	Beginning inventory	50	$             75.00	$3,750
Purchases:
-------	Purchases	218	$             85.00	$18,530
-------	Purchases	236	$             90.00	$21,240
	Sales (Cost of Goods Sold)
	From Beginning Inventory				50	$         75.00	$3,750
	From First Purhase				218	$         85.00	$18,530
	Rest of From Second Purchases				72	$         90.00	$6,480	164	$         90.00	$14,760
	Total	504		$43,520	340		$28,760	164		$14,760
	Answer =
	FIFO	Units	@ unit Cost	Cost of Goods Sold
	From First Purhase	50	$75	$3,750
	Rest of From Second Purchases	218	$85	$18,530
		72	$90	$6,480
	Total			$28,760
	FIFO			Ending inventory
	From Second Purchases	164	90	$14,760
LIFO METHDO
		COST OF GOODS AVAILABLE FOR SALE			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	No. of Units	Cost Per unit	Total	No. of Units	Cost Per unit	Cost of Goods Sold	No. of Units	Cost Per unit	Ending invetory
-------	Beginning inventory	50	$             75.00	$3,750
Purchases:
-------	Purchases	218	$             85.00	$18,530
-------	Purchases	236	$             90.00	$21,240
	Sales (Cost of Goods Sold)
	Rest of From Second Purchases				236	$         90.00	$21,240
	From First Purhase				104	$         85.00	$8,840	114	$         85.00	$9,690
	From Beginning Inventory							50	$         75.00	$3,750
	Total	504		$43,520	340		$30,080	164		$13,440
	Answer =
	LIFO	Units	@ unit Cost	Cost of Goods Sold
	Rest of From Second Purchases	50	$75	$3,750
	From First Purhase	218	$85	$18,530
	From First Purhase	72	$90	$6,480
	Total			$28,760
	FIFO			Ending inventory
	From First Purhase	114	85	$9,690
	From Beginning inventory	50	75	$3,750
				$13,440
Weightged Average
		COST OF GOODS AVAILABLE FOR SALE
Date	Particulars	No. of Units	Cost Per unit	Total
-------	Beginning inventory	50	$             75.00	$3,750
Purchases:
-------	Purchases	218	$             85.00	$18,530
-------	Purchases	236	$             90.00	$21,240
	Goods Available For Sold	504	$             86.35	$43,520
	Answer =
	Weighted Average	Units	@ unit Cost	Cost of Goods Sold
	Csot of Goods Sod	340	$86.35	$29,359
	Ending invetory	164	$86	$14,161