Question

Option #1: Inventory Entries Practice Exercises

Below is a record of the purchases and sales of inventory throughout the first four months:

	Units	Cost/Price Per Unit
1/1/x7 Beginning Balance	100	$3.50
1/31/x7 Purchase	125	$4.00
2/15/x7 Purchase	250	$4.50
2/25/x7 Sale	150	$7.75
3/10/x7 Purchase	300	$5.00
3/31/x7 Purchase	75	$5.50
4/10/x7 Sale	225	$8.25
4/15/x7 Purchase	100	$6.00
4/30/x7 Sale	350	$8.50

Requirements:

1. How many units were available for sale throughout the year?
2. What was the total value of all goods available for sale throughout the year?
3. How many physical units were sold?
4. How many physical units are in ending inventory?
5. What is the total sales value for all three sales?

	Units	Price Per Unit	Total
2/25/x7 Sale
4/10/x7 Sale
4/30/x7 Sale
Total

Each assignment must include a title page and reference page. Review the grading rubric to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.

Note: The download the template required for this assignment is located in the Module 4 folder.

Option #2: LIFO Perpetual vs. LIFO Periodic

Below is a record of the purchases and sales of inventory throughout the first four months.

	Units	Cost/Price Per Unit
1/1/x7 Beginning Balance	100	$3.50
1/31/x7 Purchase	125	$4.00
2/15/x7 Purchase	250	$4.50
2/25/x7 Sale	150	$7.75
3/10/x7 Purchase	300	$5.00
3/31/x7 Purchase	75	$5.50
4/10/x7 Sale	225	$8.25
4/15/x7 Purchase	100	$6.00
4/30/x7 Sale	350	$8.50

Requirement

1. Calculate the cost of goods sold under the LIFO Perpetual Method for each of the below sales.

	Units	Cost Per Unit	Total
2/25/x7 Sale
Show Detail
Show Detail
4/10/x7 Sale
Show Detail
Show Detail
4/30/x7 Sale
Show Detail
Show Detail
Total

2. Calculate the cost of goods sold under the LIFO Periodic Method for each of the below sales.

	Units	Cost Per Unit	Total
2/25/x7 Sale
Show Detail
Show Detail
4/10/x7 Sale
Show Detail
Show Detail
4/30/x7 Sale
Show Detail
Show Detail
Total

3. What is the main reason for the differences in the two methods?

Each assignment must include a title page and reference page. Review the grading rubric to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.

Answer 1

Calculation of No of units were available for sale and their value throughout the year

	Units	Cost/Price Per Unit	Amount
1/1/x7 Beginning Balance	100.00	$3.50	$350.00
1/31/x7 Purchase	125.00	$4.00	$500.00
2/15/x7 Purchase	250.00	$4.50	$1,125.00
3/10/x7 Purchase	300.00	$5.00	$1,500.00
3/31/x7 Purchase	75.00	$5.50	$412.50
4/15/x7 Purchase	100.00	$6.00	$600.00
	950.00		$4,487.50

No of units in Ending inventory

	Units
1/1/x7 Beginning Balance	100.00
1/31/x7 Purchase	125.00
2/15/x7 Purchase	250.00
2/25/x7 Sale	(150.00)
3/10/x7 Purchase	300.00
3/31/x7 Purchase	75.00
4/10/x7 Sale	(225.00)
4/15/x7 Purchase	100.00
4/30/x7 Sale	(350.00)
Ending Inventory	225.00

Calculation of No of units and its value

	Units	Cost/Price Per Unit	Total
2/25/x7 Sale	150.00	$7.75	$ 1,162.50
4/10/x7 Sale	225.00	$8.25	$ 1,856.25
4/30/x7 Sale	350.00	$8.50	$ 2,975.00
Total	725.00		$ 5,993.75

2)

Units	Units	Cost Per Unit	Total
2/25/x7 Sale	150	4.50	675.00
Show Detail	150	4.50	675.00
Show Detail
4/10/x7 Sale	225		1,162.50
Show Detail	75	5.50	412.50
Show Detail	150	5.00	750.00
4/30/x7 Sale	350		1,800.00
Show Detail	100	6.00	600.00
Show Detail	150	5.00	750.00
Show Detail	100	4.50	450.00
Total	725		3,637.50

Units	Units	Cost Per Unit	Total
2/25/x7 Sale	150		875.00
Show Detail	100	$6.00	600.00
Show Detail	50	$5.50	275.00
4/10/x7 Sale	225		1,137.50
Show Detail	25	5.50	137.50
Show Detail	200	5.00	1,000.00
4/30/x7 Sale	350		1,625.00
Show Detail	100	5.00	500.00
Show Detail	250	4.50	1,125.00
Total	725		3,637.50