Question

125 each in August, the company completed the following into actions Omamental on Worsten Augsh ots of iron inventory FT Click the icon to the actions) Read the formers Cost of Goods Sold Data Table Total Unit Cost Total Cost Quality Cout Cont a ct 25 $ 500 Unca U Sales Price s 25 125 5 15 20 3040 65 4 1 s 2000 Aug 3 Purchase 21 S 30 Purchase ass 2010 205 AS 50 120 S750 20 53215 Require the company's cost of OLFO, and we verge inventory costing print [Dono] The cost of goodsid amount torusting Fo tory costing is $ 2140 The amount F o r sting is $ The cost of goods sold amount for August using weighted average inventory cooling is $ 3215 Requirements. Com oss o g OURO, and very cong the Sales Revenue - Cont of Good Son Cross of Weighted average 5 4.755

Answer 1

Requirement 4

Computation of COGS Under FIFO Method and perpetual inventory -

FIFO - First In First Out means inventory which comes first in stock will issue first from stock.

under FIFO
	Purchase			Cost of goods sold			Inventory on hand
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
1-Aug							60	25	1500
3-Aug				45	25	1125	15	25	375
8-Aug	65	41	2665				80	38	3040
21-Aug				55	38	2015	25	41	1025
30-Aug	20	56	1120				45	47.67	2145
						3140

Computation of COGS Under LIFO Method and perpetual inventory -

LIFO means "Last In First Out" means inventory comes last in stock will issue first from stock.

under LIFO
	Purchase			Cost of goods sold			Inventory on hand
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
1-Aug							60	25	1500
3-Aug				45	25	1125	15	25	375
8-Aug	65	41	2665				80	38	3040
21-Aug				55	41.00	2255	25	31.4	785
30-Aug	20	56	1120				45	42.33	1905
						3380

Computation of COGS Under Weighted Average Method and perpetual inventory -

under Weighted Average
	Purchase			Cost of goods sold			Inventory on hand
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
1-Aug							60	25	1500
3-Aug				45	25	1125	15	25	375
8-Aug	65	41	2665				80	38	3040
21-Aug				55	38.00	2090	25	38	950
30-Aug	20	56	1120				45	46.00	2070
						3215

Requirement 5 -

Computation of Gross profit for August using FIFO, LIFO & Weighted Average Inventory costing methods -

	Sales Revenue	-	Cost of Goods Sold	=	Gross Profit
FIFO	7970	-	3140 (from above computation)	=	4830
LIFO	7970	-	3380(from above computation)	=	4590
Weighted Average	7970	-	3215(from above computation)	=	4755

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