Question

III. Inventory Valuation The following transactions during the year ended December 31, 20x9 are reported by Patterson Corporation for its major inventory item: Unit Units Cost/Price 1.4 Balance on 1/01/09 Purchases 4/01/09 Purchases 8/15/09 1.2 1.0 2,500 5,500 2,000 10,000 7,500 2,500 3,500 6,600 2,000 12,100 Sold 9/01/09 Balance on 12/31/09 2.0 Required: (1) Goods available for sale during 2009 were: Units: Dollar amount: $ (2) Calculate (a) the dollar amount of inventory on 12/31/09 and (b) the cost of goods sold during 2009 using (1) LIFO, (ii) FIFO, and (iii) weighted average methods.

Answer 1

Answers

• Requirement 1

Goods available for sale:
Unit = 10000
Dollar amount = $ 12100

• Requirement 2

[i], [ii] and [iii]

	FIFO	LIFO	Weighted Average
Ending Inventory	$      2,600.00	$              3,500.00	$                 3,025.00
Cost of Goods Sold	$      9,500.00	$              8,600.00	$                 9,075.00

--Working

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	2500	$                   1.40	$                        3,500.00	2500	$                 1.40	$                 3,500.00	0	$                   1.40	$                         -
Purchases:
01-Apr	5500	$                   1.20	$                        6,600.00	5000	$                 1.20	$                 6,000.00	500	$                   1.20	$                600.00
15-Aug	2000	$                   1.00	$                        2,000.00	0	$                 1.00	$                              -	2000	$                   1.00	$            2,000.00
TOTAL	10000		$                      12,100.00	7500		$                 9,500.00	2500		$            2,600.00
LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	2500	$                   1.40	$                        3,500.00	0	$                 1.40	$                              -	2500	$                   1.40	$            3,500.00
Purchases:
01-Apr	5500	$                   1.20	$                        6,600.00	5500	$                 1.20	$                 6,600.00	0	$                   1.20	$                         -
15-Aug	2000	$                   1.00	$                        2,000.00	2000	$                 1.00	$                 2,000.00	0	$                   1.00	$                         -
TOTAL	10000		$                      12,100.00	7500		$                 8,600.00	2500		$            3,500.00
Average Method	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	2500	$                   1.40	$                        3,500.00
Purchases:
01-Apr	5500	$                   1.20	$                        6,600.00
15-Aug	2000	$                   1.00	$                        2,000.00
TOTAL	10000	$                1.210	$                      12,100.00	7500	$             1.2100	$                 9,075.00	2500	$              1.2100	$            3,025.00