Question

Grouper Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gizmo for the month of March. Grouper Company uses the perpetual inventory system. Purchases Sales Units Unit Cost Units Selling Price/Unit 3/1 Beginning inventory 150 $55 3/3 Purchase $60 3/4 Sales $120 3/10 Purchase $65 3/16 Sales 135 $130 Sales $130 3/19 3/25 Sales $130 3/30 Purchase 60 $75 Using the FIFO assumption, calculate the amount charged to cost of goods sold for March. Cost of goods sold $

Answer 1

FIFO
Cost of Goods Sold = $24735
Ending Inventory = $13275

LIFO
Cost of Goods Sold = $25725
Ending Inventory = $11925

Moving Average
Ending Inventory = $12910

FIFO		Cost of Good Available for sale			Cost of Goods Sold			Ending Inventory
		Quantity	Unit Cost	Amount	Quantity	Unit Cost	Amount	Quantity	Unit Cost	Amount
3/1	Beginning Inventory	150	$    55.00	$   8,250.00				150	$    55.00	$   8,250.00
3/3	Purchase	90	$    60.00	$   5,400.00				150	$    55.00	$   8,250.00
								90	$    60.00	$   5,400.00
3/4	Sales				90	$    55.00	$   4,950.00	60	$    55.00	$   3,300.00
								90	$    60.00	$   5,400.00
3/10	Purchase	300	$    65.00	$ 19,500.00				60	$    55.00	$   3,300.00
								90	$    60.00	$   5,400.00
								300	$    65.00	$ 19,500.00
3/16	Sales				60	$    55.00	$   3,300.00
					75	$    60.00	$   4,500.00	15	$    60.00	$       900.00
								300	$    65.00	$ 19,500.00
3/19	Sales				15	$    60.00	$       900.00
					90	$    65.00	$   5,850.00	210	$    65.00	$ 13,650.00
3/25	Sales				75	$    65.00	$   4,875.00	135	$    65.00	$   8,775.00
3/30	Purchase	60	$    75.00	$   4,500.00				135	$    65.00	$   8,775.00
								60	$    75.00	$   4,500.00
	Total			$ 37,650.00			$ 24,375.00			$ 13,275.00

LIFO		Cost of Good Available for sale			Cost of Goods Sold			Ending Inventory
		Quantity	Unit Cost	Amount	Quantity	Unit Cost	Amount	Quantity	Unit Cost	Amount
3/1	Beginning Inventory	150	$    55.00	$   8,250.00				150	$    55.00	$   8,250.00
3/3	Purchase	90	$    60.00	$   5,400.00				150	$    55.00	$   8,250.00
								90	$    60.00	$   5,400.00
3/4	Sales				90	$    60.00	$   5,400.00	150	$    55.00	$   8,250.00
3/10	Purchase	300	$    65.00	$ 19,500.00				150	$    55.00	$   8,250.00
								300	$    65.00	$ 19,500.00
3/16	Sales				135	$    65.00	$   8,775.00	150	$    55.00	$   8,250.00
								165	$    65.00	$ 10,725.00
3/19	Sales				105	$    65.00	$   6,825.00	150	$    55.00	$   8,250.00
								60	$    65.00	$   3,900.00
3/25	Sales				60	$    65.00	$   3,900.00	135	$    55.00	$   7,425.00
					15	$    55.00	$       825.00
3/30	Purchase	60	$    75.00	$   4,500.00				135	$    55.00	$   7,425.00
								60	$    75.00	$   4,500.00
	Total			$ 37,650.00			$ 25,725.00			$ 11,925.00

M.Avg		Cost of Good Available for sale			Cost of Goods Sold			Ending Inventory
		Quantity	Unit Cost	Amount	Quantity	Unit Cost	Amount	Quantity	Unit Cost	Amount
3/1	Beginning Inventory	150	$    55.00	$         8,250				150	$    55.00	$         8,250
3/3	Purchase	90	$    60.00	$         5,400				150	$    55.00	$         8,250
								90	$    60.00	$         5,400
					Average			240	$    56.88	$       13,650
3/4	Sales				90	$    56.88	$         5,118	150	$    56.88	$         8,532
3/10	Purchase	300	$    65.00	$       19,500				150	$    56.88	$         8,532
								300	$    65.00	$       19,500
					Average			450	$    62.29	$       28,032
3/16	Sales				135	$    62.29	$         8,410	315	$    62.29	$       19,622
3/19	Sales				105	$    62.29	$         6,540	210	$    62.29	$       13,082
3/25	Sales				75	$    62.29	$         4,672	135	$    62.29	$         8,410
3/30	Purchase	60	$    75.00	$         4,500				135	$    62.29	$         8,410
								60	$    75.00	$         4,500
	Total			$       37,650			$       24,740	195		$       12,910