Question

ATV Co began operations on March 1 and uses a perpetual Inventory system. It entered into purchases and sales for March as shown in the Tableau Dashboard March Wednesday Sunday Monday Tuesday stay aday Saturday Legend No Purchases or Sal. Purchases Sales 2 26 29 1. Compute the cost assigned to ending Inventory using FIFO. 2. Compute the cost assigned to ending inventory using LIFO. 3. Compute the cost assigned to ending inventory using Weighted Average.

March 1: Purchase 100 units, $50 each

March 5: Purchase 400 units, $55 each

March 9: Sales 420 units, $85 each

March 18: Purchase 120 units, $60 each

March 25: Purchase 200 units, $62 each

March 29: Sales 160 units, $95 each

Answer 1

Requirement 1 Perpetual FIFO Goods Purchased Cost of goods sold Inventory Balance Date No of Units Cost per Unit No of Units sold Cost per Unit Cost of goods sold No of Units Cost per Unit Inventory Balance Mar-01 100 $ 50.00 100 $ 50.00 $ 5,000.00 Mar-05 400 $ 55.00 100 $ 400 $ 50.00 55.00 $ $ 5,000.00 22,000.00 Mar-09 80 $ 55.00 $ 4,400.00 100 $ 320 $ 50.00 55.00 $ $ 5,000.00 17,600.00 Mar-18 120 $ 60.00 80 $ 120 $ 55.00 $ 60.00 $ 4,400.00 7,200.00 Mar-25 200 $ 62.00 80 $ 120 $ 200 $ 55.00 60.00 62.00 $ $ $ 4,400.00 7,200.00 12,400.00 Mar-29 80 $ 80 $ 55.00 60.00 $ $ 4,400.00 4,800.00 0 $ 40 $ 200 $ 55.00 60.00 62.00 $ $ $ 2,400.00 12,400.00 Totals 31,800.00 $ 14,800.00 Requirement 2 Perpetual LIFO Goods Purchased Cost of goods sold Inventory Balance Date No of Units Cost per Unit No of Units sold cost per Unit Cost of goods sold No of Units Cost per Unit Inventory Balance Mar-01 100 $ 50.00 100 $ 50.00 $ 5,000.00 Mar-05 400 $ 55.00 100 $ 400 $ 50.00 55.00 $ $ 5,000.00 22,000.00 Mar-09 80 $ 50.00 $ 4,000.00 20 $ 400 $ 50.00 55.00 $ $ 1,000.00 22,000.00 Mar-18 120 $ 60.00 80 $ 120 $ 50.00 60.00 $ $ 4,000.00 7,200.00 Mar-25 200 $ 62.00 80 $ 120 $ 50.00 $ 60.00 $ 4,000.00 7,200.00 12,400.00 Mar-29 160 $ 62.00 $ 9,920.00 80 $ 120 $ 40 $ 50.00 60.00 62.00 $ $ $ 4,000.00 7,200.00 2,480.00 Totals 32,920.00 $ 13,680.00 Requirement 3 Weighted Average Perpetual Goods Purchased Cost of goods sold Inventory Balance Date No of Units Cost per Unit No of Units sold Cost per Unit Cost of goods sold No of Units Cost per Unit Inventory Balance Mar-01 100 $ 50.00 100 $ 50.00 $ 5,000.00 Mar-05 400 $ 55.00 100 $ 400 $ 500 $ 50.00 55.00 54.00 $ $ $ 5,000.00 22,000.00 27,000.00 Average Mar-09 420 $ 54.00 $ 22,680.00 80 $ 54.00 $ 4,320.00 Mar-18 120 $ 60.00 80 $ 120 $ 200 $ 54.00 60.00 57.60 $ $ $ 4,320.00 7,200.00 11,520.00 Average Mar-25 200 $ 62.00 200 $ 200 $ 400 $ 57.60 62.00 59.80 $ $ $ 11,520.00 12,400.00 23,920.00 Average Mar-29 160 $ 59.80 $ 9,568.00 240 $ 59.80 $ 14,352.00 Totals 32,248.00 $ 14,352.00