Valuation of Inventory using FIFO method | |||||||
Date | Pur Qty | Rate | Value | Sold Qty | Closing balance | Pur rate | Closing Inventory Value |
Jan.20 | 400 | 8 | 3200 | 400 | 0 | 8 | 0 |
Apr.21 | 200 | 10 | 2000 | 200 | 0 | 10 | 0 |
July.25 | 280 | 13 | 3640 | 210 | 70 | 13 | 910 |
Sep.19 | 90 | 15 | 1350 | 90 | 15 | 1350 | |
Total | 970 | 10190 | 810 | 2260 | |||
So, Cost of Goods Sold = | 10190 - 2260 = | 7930 |
Journal Entries
No | Date | General Journal | Debit | Credit |
1 | Year 1 | Cash | 16200 | |
Sales Revenue | 16200 | |||
2 | Year 1 | Cost of Goods Sold | 7930 | |
Merchandise inventory | 7930 |
Valuation of Inventory using LIFO method | |||||||
Date | Pur Qty | Rate | Value | Sold Qty | Closing balance | Pur rate | Closing Inventory Value |
Jan.20 | 400 | 8 | 3200 | 240 | 160 | 8 | 1280 |
Apr.21 | 200 | 10 | 2000 | 200 | 0 | 10 | 0 |
July.25 | 280 | 13 | 3640 | 280 | 0 | 13 | 0 |
Sep.19 | 90 | 15 | 1350 | 90 | 0 | 15 | 0 |
Total | 970 | 10190 | 810 | 1280 | |||
So, Cost of Goods Sold = | 10190 - 1280 = | 8910 |
Journal Entries | ||||
No | Date | General Journal | Debit | Credit |
1 | Year 1 | Cash | 16200 | |
Sales Revenue | 16200 | |||
2 | Year 1 | Cost of Goods Sold | 8910 | |
Merchandise inventory | 8910 |
Valuation of Inventory using Weighted Average method | |||||||
Date | Pur Qty | Rate | Value | Sold Qty | Closing balance | Weighted Avg Rate | Closing Inventory Value |
Jan.20 | 400 | 8 | 3200 | 240 | 0 | ||
Apr.21 | 200 | 10 | 2000 | 200 | 0 | ||
July.25 | 280 | 13 | 3640 | 280 | 0 | ||
Sep.19 | 90 | 15 | 1350 | 90 | 0 | ||
Total | 970 | 10190 | 810 | 160 | 10.51 | 1,681 | |
(10190/970 Qty) | |||||||
So, Cost of Goods Sold = | 10190 - 1681 = | 8509 |
Journal Entries | ||||
No | Date | General Journal | Debit | Credit |
1 | Year 1 | Cash | 16200 | |
Sales Revenue | 16200 | |||
2 | Year 1 | Cost of Goods Sold | 8509 | |
Merchandise inventory | 8509 |
Cost of Goods Sold A/c | FIFO | ||||
Date | Particulars | Debit | Date | Particulars | Credit |
Year 1 | To Merchandise Inventory | 7930 | |||
Year 1 | By Bal c/f | 7930 | |||
7930 | 7930 | ||||
Cost of Goods Sold A/c | LIFO | ||||
Date | Particulars | Debit | Date | Particulars | Credit |
Year 1 | To Merchandise Inventory | 8910 | |||
Year 1 | By Bal c/f | 8910 | |||
8910 | 8910 | ||||
Cost of Goods Sold A/c | Weighted Average | ||||
Date | Particulars | Debit | Date | Particulars | Credit |
Year 1 | To Merchandise Inventory | 8509 | |||
Year 1 | By Bal c/f | 8509 | |||
8509 | 8509 |
Required information [The following information applies to the questions displayed below.] Part 2 of 3 The...
Required information [The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased 400 units @ $ 8 = $3,200 Purchased 200 units @ $10 = 2,000 Purchased 280 units @ $13 = 3,640 Purchased 90 units @ $15 = 1,350 During the year, The Shirt Shop sold 810 T-shirts for $20 each. b. Record the...
Required information [The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased 400 units @ $ 8 = $3,200 Purchased 200 units @ $10 = 2,000 Purchased 280 units @ $13 = 3,640 Purchased 90 units @ $15 = 1,350 During the year, The Shirt Shop sold 810 T-shirts for $20 each. b. Record the...
Required information [The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased 400 units @ $ 8 = $3,200 Purchased 200 units @ $10 = 2,000 Purchased 280 units @ $13 = 3,640 Purchased 90 units @ $15 = 1,350 During the year, The Shirt Shop sold 810 T-shirts for $20 each. b. Record the...
Required information [The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased 400 units @ $ 8 = $3,200 Purchased 200 units @ $10 = 2,000 Purchased 280 units @ $13 = 3,640 Purchased 90 units @ $15 = 1,350 During the year, The Shirt Shop sold 810 T-shirts for $20 each. b. Record the...
Required information The following information applies to the questions displayed below The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased 460 units 8 $3,680 Apr. 21 Purchased 260 units e $ 10 2,600 July 25 Purchased 340 units $13 -,420 Sept. 19 Purchased 150 units e 15 2,250 During the year, The Shirt Shop sold 990 T-shirts for $24 each. b. Record the above transactions in general journal form...
Required information [The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 540 units @ $ 7 340 units @ $ 9= 420 units @ $ 12 = 230 units @ $ 14 = $3.799 3.268 5,840 3.229 During the year. The Shirt Shop sold 1.230 T-shirts for $23 each b. Record...
Required information [The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased 400 units @ $ 8 = $3,200 Purchased 200 units @ $10 = 2,000 Purchased 280 units @ $13 = 3,640 Purchased 90 units @ $15 = 1,350 During the year, The Shirt Shop sold 810 T-shirts for $20 each. b. Record the...
Required information [The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased 580 units @ $ 9 = 380 units @ $ 11 = 460 units @ $ 14 = 270 units @ $ 16 = $5,220 4,180 6,440 4,320 During the year, The Shirt Shop sold 1,350 T-shirts for $25 each. b....
Required information (The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased 400 units @ $ 8 = $3,200 Purchased 200 units @ $10 = 2,000 Purchased 280 units@ $13 = 3,640 Purchased 90 units @ $15 = 1,350 During the year, The Shirt Shop sold 810 T-shirts for $20 each. Required a. Compute the...
Required information [The following information applies to the questions displayed below) The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Jan. 20Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased 370 units 140 units 220 units 100 units $12 $13 - $15 $16 - $4,440 1,820 3.300 1,600 During the year, The Shirt Shop sold 690 T-shirts for $21 each. Required a. Compute the amount of ending inventory The Shirt Shop would...