Question

Option #1: Inventory Entries Practice Exercises Below is a record of the purchases and sales of inventory throughout the first four months: Cost/Price Per Units Unit 1/1/x7 Beginning Balance 100 $3.50 1/31/x7 Purchase 125 $4.00 2/15/x7 Purchase $4.50 2/25/x7 Sale 150 $7.75 3/10/x7 Purchase 300 $5.00

Answer 1

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Questions	Description of Question	Answer	UOM
1	How many units were available for sale throughout the year	950	Units
2	what was the total value of the all goods available for sale throughout the year	4487	$
3	How many physical units were sold	725	Units
4	How many physical units are in ending Inventory	225	units
5	what is the total sales value for all the three sales	5993.75	$

Explanation : The Total sale value is $ 5993.75.

However, for cost of Inventory purpose the cost has been worked as under

	units	Price per unit	Total
25.02.17	150	3.67	550
10.04.17	225	4.33	975
30.04.17	350	4.86	1700
Total	725		3225

Reference Page

Assumption : Method of Inventory valuation followed FIFO

For Inventory Point of view, the working has been done with cost of good sold concept

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Method - FIFO											Breakup of value
Date	Particulars	Purchased			Sales			Balance
		Units	Unit cost	Total	Units	Unit cost	Total	Units	Unit cost	Total
01.01.17	opening balance							100	3.5	350
31.01.17	Purchases	125	4	500			0	225		850	100 x 3.50 = 350 + 125 x 4 = 500 , Total 850
15.02.17	Purchases	250	4.5	1125			0	475		1975	100 x 3.50 = 350 + 125 x 4 = 500 + 250 x 4.5 = 1125 , Total 1975
25.02.17	Sale			0	100	3.5	350	375
25.02.17	Sale				50	4	200	325	4.38	1425	75 X 4 = 300 , 250 X 4.50 = 1125 = 1425
03.10.17	Purchases	300	5	1500			0	625		2925	75 X 4 = 300 , 250 X 4.50 = 1125 , 300 X 5 = 1500 , Total 2925
31.03.17	Purchases	75	5.5	412.5			0	700	4.7678571	3337.5	75 X 4 = 300 , 250 X 4.50 = 1125 , 300 X 5 = 1500 , 75 x 5.5 = 412.50 Total 2925
10.04.17	sale			0	75	4	300	625
10.04.17	sale				150	4.5	675	475	4.9736842	2362.5	100 X 4.50 = 450 , 300 X 5 = 1500 , 75 x 5.5 = 412.50 Total 2362.50
15.04.17	Purchases	100	6	600			0	575	5.15	2962.5	100 X 4.50 = 450 , 300 X 5 = 1500 , 75 x 5.5 = 412.50 , 100 x 6 = 600 Total 2962.50
30.04.17	Sale			0	100	4.5	450	475
					250	5	1250	225	5.61	1262.5	50 X 5 = 250 , 75 x 5.5 = 412.50 , 100 x 6 = 600 Total 1262.50
Total		850			725			225