Question

You are the accountant of an inventory style business and the business had the following transactions during the month of February 20xx. #of Units Unit Cost 10 $120 125 Date Transaction Type 1-JanBeginning Inventory 1-FebPurchased 15-Feb Sold 16-FebPurchased 21-Feb Sold 22-FebSold 25-FebPurchased 28-Feb Sold 130 132 Your task as the company's accountant is to account for these transactions using both FIFO and LIFO in the same Excel workbook, but different tabs. Please work the entire problem by computing COGS at the end of the month and Ending Inventory balances and dollars at the end of the month. If you had been provided with the sales price then you could easily calculate the net income amount for each method by multiplying the sales price by the number of units sold, then subtracting the COGS you calculated for each method. In this case, I leave that portion out for simplicity purposes. Please upload your workbook to the drop box.

Answer 1

Solution 1. COGS FIFO Date I Transaction Lil Beginning Inventory 1 2111 Purchase 2015 Salos 12002 1250 2li5 L Closing 2116/ Purchase 12/21 sale 2/21/ Closing No. of units / Rate / Ending Iru. 10120 $ 1200 wo 125 5000 sio 11202 L10 1125) 30 1125 3750 50-130 6500 20 1125 2500 10211252 1250% so/130) 6500 5 102 1125? 12501 205130 2600) 30 11301 3950 40 132 5280 20 / 130 | 2600 107 11302 130021 nos 132) 5280 6,580 11,400 12/22 sales 20 12/22 closing 12/25 Purchase 12/28 sales 12/28 | closing Conclusioni - Ending Inventory = $6,580 slerned with COGS = $ 11,400 clmScanner

INo. of unite Rate 120 LIFU Date / Transaction 11 Beg. Inventory 211 Porcheze als Sales 2115 Closing Ending Inv. $1200 COGS 125 20 125 12/16 12/21 Tal Purchare Sales closing 2/22 12/22 Sales closing 20/ 125 L 2500 10% 1202 12002 2500 | 50 130 6500 20 1130 2600 10120212007 - 2011 125 ( 2500 l 30 7 130 3900) 30 1130 3900 11071207 / 12002 | 20 | 125 | 2500) 40 | 132 | 5280 20 1 132 2640 110211207 12001 | 20 | 1250 2500 1 20 132J 2640) 12/25 Purchase 12/28/ Sales 2728 Closing 6,340 1'11,640 Conclusion : Ending Inventory = $ 6,340 An Scanned with coGs = $11.640. CamScanner