Question

The inventory records Units tory records of Beta showed the following transactions for one item of inventory Unit Cost Transaction $19 1. Opening inventory 2. Purchase 3. Sale (@$30/unit) $21 4. Purchase 5. Sale (@$32/unit) $20 $22 6. Purchase tity was left in inventory after the above transactions occurred? 1. What quantity was left in in was total sales revenue based on the above transactions 2. What was total sales revenue bas 3. Complete the following table Method COGS ($) Ending Inventory ($) Gross Profit FIFO - Perpetual FIFO - Periodic Average Cost - Perpetual Average Cost - Periodic

Answer 1

Periodic FIFO No Units Explaination Inventory Purchases Purchases Purchases unit Cost Total Cost 30 $ 19.00 $ 570.00 45 $ 20.00 $ 900.00 50 $ 21.00 $ 1,050.00 50 $ 22.00 $ 1,100.00 Cost of Goods available for sale 175 $ 3,620.00 Under FIFO Method, The Goods Which Are Purchased First are sold First Therefore, Ending Inventory Consists of Goods which are Purchased Last Less : Ending Inventory 50 units @ $22 25 Units @ 21 $ 1,100.00 $ 525.00 $ 1,625.00 Cost of Goods sold 1,995.00 Average Cost Explaination Units Inventory Purchases Purchases Purchases unit Cost Total Cost 30 $ 19.00 $ 570.00 45 $ 20.00 $ 900.00 50 $ 21.00 $ 1,050.00 50 $ 22.00 $ 1,100.00 $ 3,620.00 Cost of Goods available for sale Avg Cost per unit : 3620/175 175 20.69 $ Less : Ending Inventory 75 units @ $20.69 $ 1,552 Cost of Goods sold 2,068

FIFO Method Perpetual inventory Record Cost of goods sold Total cost Quantity unit cost Total cost Purchases unit cost Quantity Inventory Quantity unit cost total cost 30 $19.00 $ 570.00 $ 20.00 $ 900.00 30 $19.00 $20.00 $ $ 570.00 900.00 45 25 $20.00 $ 500.00 30 20 $19.00 $20.00 $ $ 570.00 400.00 50 $ 21.00 $ 1,050.00 25 $20.00 $21.00 $ $ 500.00 1,050.00 50 25 $21.00 $ 525.00 $20.00 $ $21.00 $ 500.00 525.00 25 50 $ 22.00 $ 1,100.00 25 50 $21.00 $22.00 $ $ 525.00 1,100.00 $ 1,995.00 $ 1,625.00 Weighted Avg Method Perpetual inventory Record Cost of goods sold Total cost Quantity unit cost Total cost Purchases unit cost Quantity Inventory Quantity unit cost total cost 30 $19.00 $ 570.00 45 $ 20.00 $ 900.00 30 45 $19.00 $20.00 $19.60 $ $ $ 570.00 900.00 1,470.00 75 50 $19.60 $ 980.00 25 $19.60 $ 490.00 50 $ 21.00 $ 1,050.00 25 50 75 $19.60 $21.00 $20.53 $ $ $ 490.00 1.050.00 1,540.00 50 $20.53 $ 1,027 25 $20.53 $ 513 $ 22.00 $ 1,100.00 25 50 $20.53 $22.00 $ $ 513 1,100.00 $ 2,007 $ 1,613

1) Calculation of Ending Inventory Number of units available for sale Less; Number of units sold Ending Inventory 175 -100 75 Units 2) Total Sales Revenue 50 units @ $30 50 units @ $32 Sales Revenue $ 1,500.00 $ 1,600.00 $ 3,100.00 3) Method FIFO - Perpetual FIFO - Periodic Average Cost - Perpetual Average Cost - Periodic COGS $ 1,995.00 $ 1,995.00 $ 2,007.00 $ 2,068.00 Ending Inventory Gross Profit $ 1,625.00 $ 1,105.00 $ 1,625.00 $ 1,105.00 $ 1,613.00 $ 1,093.00 $ 1,552.00 $ 1,032.00