Question

Question 5 View Policies Show Attempt History Current Attempt in Progress Concord Corporation had a beginning inventory of 115 units of Product RST at a cost of $9 per unit. During the year, purchases were: Feb. 20 640 units at $10 Aug. 12 450 units at $12 May 5 580 units at $11 Dec. 8 115 units at $13 Concord uses a periodic inventory system. Sales totaled 1.520 units.

Answer 1

Name of The Company Concord Corporation System of Inventory Periodic Date Particulars Opening Stock Feb-20 Purchases May-05 Purchases Aug-12 Purchases Dec-08 Purchases TOTAL No of Units 115 $ 640 $ 580 $ 450 $ 115 $ 1900 Cost Per Unit Cost Of Goods 9.00 $ 1,035.00 10.00 $ 6,400.00 11.00 $ 6,380.00 12.00 $ 5,400.00 13.00 $ 1,495.00 $ 20,710.00 Question (a) masa berage 1 520.710.00 Cost of Goods Available for Sale $ 20,710.00 = Value of aal the goods which are available for sale. Since in Periodic Costiong Only Opening and closing inventory are considered for Calculation of remaining Stock, The Value of all Purchases including Opening Stock Constitute cost of goods available for sale Average cost of Goods Total No of Units on Board (Available for Sale) 1900 Total Cost of Goods Available for Sale $ 20,710.00 Average Cost of Goods =B/A $ 10.90

Question (b) The Ending Inventory The Cost of Goods Sold $ $ FIFO 4,675.00 $ 16,035.00 $ LIFO Average Cost 4,480.00 $ 4,142.00 17,025.00 $ 16,568.00 Ending Inventory = Goods available for sale - Sales Sales = Cost of Goods available for sale - Ending Inventory We Know That Opening Stock 115 Units (Given) Purchases Feb-20 May-05 Aug-12 | Dec-08 TOTAL 640 580 450 115 1785 Units (Computed) Sales 1520 Units (Given) Note: In Periodic Inventory system the ending inventory in all the methods of accounting remains same as Only opening Stock, Ending Stock and Total Sales are considered Only The value of Such Inventory changes duet o difference in Method of Accounting) Ending Inventory = 115 + 1785 - 1520 = 380 Units Page 2 FIFO Date Particulars Opening Stock Feb-20 Purchases May-05 Purchases Aug-12 Purchases Dec-08 Purchases No of Units 115 $ 640 $ 580 $ 450 $ 115 $ Cost Per Unit Cost Of Goods 9.00 $ 1,035.00 10.00 $ 6,400.00 11.00 $ 6,380.00 12.00 $ 5,400.00 13.00 $ 1,495.00 Sales 1520 in FIFO first 1520 units are sold Opening Stock Feb-20 Purchases May-05 Purchases Aug-12 Purchases Total 115 $ 640 $ 580 $ 185 $ 1520 9.00 $ 10.00 $ 11.00 $ 12.00 $ $ 1,035.00 6,400.00 6,380.00 2,220.00 16,035.00 Remaining Goods Aug-12 Purchases Dec-08 Purchases Total 265 $ 115 $ 12.00 $ 13.00 $ $ 3,180.00 1,495.00 4,675.00 380

LIFO Date Opening Stock Feb-20 Purchases May-05 Purchases Aug-12 Purchases Dec-08 Purchases No of Units 115 $ 640 $ 580 $ 450 $ 115 $ Cost Per Unit Cost Of Goods 9.00 $ 1,035.00 10.00 $ 6,400.00 11.00 $ 6,380.00 12.00 $ 5,400.00 13.00 $ 1,495.00 Sales 1520 in LIFO Last 1520 units are sold 375 $ 580 S Feb-20 Purchases May-05 Purchases Aug-12 Purchases Dec-08 Purchases Total 450 S 115 $ 1520 10.00 $ 11.00 $ 12.00 $ 13.00 $ $ 3,750.00 6,380.00 5,400.00 1,495.00 17,025.00 Remaining Goods Opening Feb-20 Purchases Total 115 $ 265 $ 380 9.00 13.00 $ $ $ 1,035.00 3,445.00 4,480.00 Average Cost Date Particulars Opening Stock Feb-20 Purchases May-05 Purchases Aug-12 Purchases Dec-08 Purchases TOTAL No of Units 115 $ 640 $ 580 $ 450 $ 115 $ 1900 Cost Per Unit 9.00 10.00 11.00 12.00 13.00 Cost Of Goods $ 1,035.00 $ 6,400.00 $ 6,380.00 $ 5,400.00 $ 1,495.00 $ 20,710.00 Total No of Units on Board (Available for Sale) 1900 Page 4, Total Cost of Goods Available for Sale $ 20,710.00 Average Cost of Goods =B/A $ 10.90 Closing Inventory Value of Closing Inventory 380 Units =380 X 10.90 = $ 4,142.00 Cost of Goods Sold 1520 Units "=1520 X 10.90 = $ 16,568.00