Question

Perpetual System- Calculating Ending Inventory and cost of Sales using Moving Average, FIFO, and LIFO April Inc. maintains a perpetual inventory system and recorded the following information for the month of January Date Units Unit Cost Inventory, January 1 950 $10.50 Purchase, January 10 400 12.00 Purchase, January 20 200 13.25 Purchase, January 28 600 14.00 Sale, January 5 500 Sale, January 13 200 Sale, January 31 Inventory, January 31 1,130 320

Answer 1

Requirement 1 Average Cost method Perpetual inventory Record Cost of goods sold Purchases Date Inventory Quantity unit cost Total cost Quantity unit cost Total cost Quantity unit cost total cost 950 $10.50 $9,975.00 Jan-01 500 $10.50 $5,250.00 450$10.50 $4,725.00 05-Jan 400 12.00 $4,800.00 450$10.50 4,725.00 400$12.00 $4,800.00 10-Jan 850 $11.21 9,525.00 200 $11.21 $ 650 $11.21 13-Jan 2,241 7,284 $2,650.00 200 13.25 650 $11.21 $ 7,284 20-Jan 200 $13.25 2,650.00 850 $11.69 $ 9,934 600 $14.00 $8,400.00 850 $11.69 $ 28-Jan 9,934 8,400.00 600 $14.00 1450 $12.64 18,334 1130 $12.64 320 $12.64 $ 14,288 4,046 31-Jan Total 11,537 $ 14,288 1020 1130 Note Unit Cost Rounded off upto 2 decimals and Final answer to 0 decimals

Requirement 2 FIFO Method Perpetual inventory Record Cost of goods sold Purchases Date Inventory Quantity unit cost Total cost Quantity unit cost total cost 950 $10.50 Quantity unit cost Total cost $9,975.00 Jan-01 500 $10.50 $5,250.00 450$10.50 4,725.00 05-Jan 400 12.00 450$10.50 $4,725.00 400 $12.00 4,800.00 10-Jan $4,800.00 250 $10.50 200 $10.50 $ 13-Jan 2,100 2,625 400 $12.00 $ 4,800 200 13.25 $2,650.00 250 $10.50 $ 20-Jan 2,625 400 $12.00 $ 4,800 200 $13.25 $ 2,650.00 600 14.00 $8,400.00 250 $10.50 400 $12.00 28-Jan 2,625 $ 4,800 200 $13.25 2,650 600 $14.00 $ 8,400 330 $12.00 200 $13.25 $ 250$10.50 $ $ 2,625 31-Jan 3,960 70$12.00 $ 840 2,650 600 $14.00 $ 8,400 $10,815 $ Total 1020 1130 15,010

Requirement 3 LIFO Method Perpetual inventory Record Cost of goods sold Purchases Date Inventory Quantity unit cost Total cost Quantity unit cost total cost 950 $10.50 9,975.00 Quantity unit cost Total cost Jan-01 450 $10.50 $4,725.00 500 $10.50 $5,250.00 05-Jan 400 12.00 $4,800.00 450 $10.50 4,725.00 10-Jan 400 $12.00 $4,800.00 200 $12.00 450$10.50 $ 13-Jan 2,400 4,725 200 $12.00 $ 2,400 450 $10.50 $ 200 13.25 $2,650.00 20-Jan 4,725 200 $12.00 $ 2,400 200$13.25 2,650.00 600 $14.00 $8,400.00 450 $10.50 $ 28-Jan 4,725 200 $12.00 $ 2,400 200 $13.25 $ 2,650 600 $14.00 $ 8,400 320 $14.00 $ 450 $10.50 $ 31-Jan 4,480 4,725 200 $12.00 $ 200 $13.25 $ 2,400 2,650 280 14.0 $ 3,920 $ 12,130 Total 1020 1130 13,695