Question

Riverbed Corp uses a perpetual inventory system reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 150 $750 12 Purchases 2,100 350 240 Purchases 1,680 Inventory 260

Show your calculations.

Answer 1

150 | Date | June 01 June 12 June 15 June 23 June 27 Statement showing Cost of Goods Cumulati Product ve Units Cumulative Average Units (a) Rate (b) (a xb)| (c) Total (d) | c/d) $ 5.00 $ 750 150 $ 750 $ 5.000 350 $ 6.00 $ 2,100 500 $ 2,850 $ 5.700 -420 $ 5.70 $ -2,394 80 $ 456 $ 5.700 240 $ 7.00 $ 1,680 320 $ 2,136 $ 6.675 -60 $ 6.68 $ -401 260 $ 1,735 $ 6.674 $ 1,735 260 Computation of Inventory - FIFO basis Cost of Goods Purchased Product Date Explanation Units (a) Rate (b) (a xb) June 01 Inventory 150 $ 5.00 $ 750 June 12 Purchase 350 $ 6.00 $ 2,100 June 15 Purchases 240 $ 7.00 $ 1,680 L 740 $ 4,530 Cost of Goods using FIFO system Date of Date of sale Purchase Units Rate Product June 15 June 01 150 $ 5.00 $ 750 June 15 June 12 270 $ 6.00 $ 1,620 June 27 June 27 60 $ 6.00 $ 360 Cost of Goods sold $ 2,730 Ending Inventory = Total Cost - Cost of goods sold = $4,530 - $2,730 $ 1,800

Cost of Goods using LIFO system Date of Date of sale Purchase Units Rate June 15 June 01 350 $ 6.00 June 15 June 01 70 $ 5.00 June 30 June 23 60 $ 7.00 Product $ 2,100 $ 350 $ 420 Cost of Goods sold $ 2,870 Ending Inventory = Total Cost - Cost of goods sold = $4,530 - $2,870 $ 1,660 Cost of Goods using Moving - Average Date of sale Units Rate Product June 15 420 $ 5.700 $ 2,394 June 30 60 $ 6.675 $ 401 Cost of Goods sold $ 2,795 Ending Inventory = Total Cost - Cost of goods sold = $4,530 - $2,795 $ 1,735 Final solutions FIFO LIFO Moving Average $ 1,735 $ 2,795 The cost of ending Inventory The cost of Goods sold $ 1,800 $ 2,730 $ 1,660 $ 2,870

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