Question

5. Assume the following data with regard to inventory of Beta Company. Sep 1 Inventory 80 units @10 per unit Purchase 100 units @11 per unit Purchase 70 units @12 per unit Purchase 85 units @12 per unit Purchase 90 units @13 per unit Inventory, Sep 30 160 units → Using the periodic inventory system, calculate the cost of the inventory at September 30 and the cost of goods sold in September under FIFO,LIFO, and average cost.

Please answer all of the questions.

NO CURSIVE PLEASE!

Answer 1

Solution 5:

Periodic Inventory Units FIFO Date Description 1-Sep-20 Beginning inventory 8-Sep-20 Purchase 14-Sep-20 Purchase 19-Sep-20 Purchase 22-Sep-20 Purchase Total Stock Units Cost per uni Total Cost 80 $ 10 $ 800 100 $ 11 $ 1,100 70 $ 12 $ 840 85 $ 12 $ 1,020 90 $ 13 $ 1,170 425 $ 4,930 Sold Units Cost per Total Cost 80 $ 10 $ 800 100 $ 11 $ 1,100 70 $ 12 $ 840 15 $ 12 $ 180 o$ 13 $ 265 $ 2,920 Closing inventory Cost per Total Cost 0 $ 10 $ 0 $ 11 $ - 0 $ 12 $ - 70 $ 12 $ 840 90 $ 13 $ 1,170 160 $ 2,010 425 Total inventory Closing inventory Sold 160 265 COGS $ Inventory $ 2,920 2,010 LIFO Units Date Description 1-Sep-20 Beginning inventory 8-Sep-20 Purchase 14-Sep-20 Purchase 19-Sep-20 Purchase 22-Sep-20 Purchase Total Stock Units Cost per uni Total Cost 80 $ 10 $ 800 100 $ 11 $ 1,100 70 $ 12 $ 840 12 $ 1,020 90 $ 13 $ 1,170 425 $ 4,930 Sold Units Cost per Total Cost $ 10 $ 20 $ 11 $ 220 70 $ 12 $ 840 85 $ 12 $ 1,020 90 $ 13 $ 1,170 265 $ 3,250 Closing inventory Units Cost per Total Cost 80 $ 10 $ 800 80 $ 11 $ 880 O $ 12 $ - O $ 12 $ . o$ 13 $ . 160 $ 1,680 85 $ Total inventory Closing inventory Sold 425 160 265 COGS Inventory $ 3,250 1,680

Average Date Description 1-Sep-20 Beginning inventory 8-Sep-20 Purchase 14-Sep-20 Purchase 19-Sep-20 Purchase 22-Sep-20 Purchase Total Stock Units Cost per uni Total Cost 10 $ 800 100 $ 11 $ 1,100 70 $ 12 $ 840 85 $ 12 $ 1,020 90 $ 13 $ 1,170 425 $ 4,930 Total inventory Closing inventory Sold 425 160 265 Average c 4930/425 11.60 COGS $ Inventory $ 3,074.00 265*11.60 1,856.00 160*11.60

Solution 6:

FIFO Method Purcahse COGS Inventory on hand Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 1-Sep-20 80 $ 10.00 $ 800.00 8-Sep-20 100 $ 11.00 $ 1,100.00 100 $ 11.00 $ 1,100.00 14-Sep-20 70 $12.00 70 $ 12.00 $ 840.00 70 $ 12.00 $ 840.00 15-Sep-20 (80) $ 10.00 (10) $ 11.00 $ (800.00) $ (110.00) - $ 10.00 $ 90 $ 11.00 $ 70 $ 12.00 $ 990.00 840.00 19-Sep-20 85 $ 12.00 $ 1,020.00 - 90 70 85 $ 10.00 $ 11.00 $ 12.00 $ 12.00 $ $ 990.00 $ 840.00 $ 1,020.00 21-Sep-20 $ 10.00 (90) $ 11.00 (10) $ 12.00 $ . $ (990.00) $ (120.00) - $ 10.00 $ - - $ 11.00 $ . 60 $ 12.00 $ 720.00 85 $ 12.00 $ 1,020.00 22-Sep-20 90 $ 13.00 $ 1,170.00 60 85 90 $ 12.00 $ 12.00 $ 13.00 $ 720.00 $ 1,020.00 $ 1,170.00 28-Sep-20 (60) $ 12.00 (15) $ 12.00 $ (720.00) $ (180.00) - 70 90 $ 12.00 $ 12.00 $ 13.00 $ . $ 840.00 $ 1,170.00

Total COGS Total Inventory 2,920 2,010 LIFO Method Purcahse COGS Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 1-Sep-20 8-Sep-20 100 $ 11.00 $ 1,100.00 14-Sep-20 70 $ 12.00 $ 840.00 Inventory on hand Quantity Unit Cost Total Cost 80 $ 10.00 $ 800.00 100 $ 11.00 $ 1,100.00 70 $ 12.00 $ 840.00 15-Sep-20 (20) $ 11.00 (70) $ 12.00 $ (220.00) $ (840.00) 80 80 . $ 10.00 $ 11.00 $12.00 $ 800.00 $ 880.00 $ 19-Sep-20 85 $ 12.00 $ 1,020.00 80 $ 10.00 80 $ 11.00 - $ 12.00 85 $ 12.00 $ 800.00 $ 880.00 $ $1,020.00 21-Sep-20 - $ 10.00 (15) $ 11.00 - $ 12.00 (85) $ 12.00 $ - $ (165.00) $ . $(1,020.00) 80 $ 10.00 65 $ 11.00 - $ 12.00 $ 800.00 $ 715.00 $ . 22-Sep-20 9 0 $ 13.00 $ 1,170.00 80 65 - - 90 $ 10.00 $ 11.00 $ 12.00 $ 12.00 $ 13.00 $ 800.00 $ 715.00 $ - $ $ 1,170.00 28-Sep-20 $ 10.00 $ 11.00 $ 12.00 $ 12.00 (75) $ 13.00 $ - $ - $ $ $ (975.00) 80 $ 10.00 $ 800.00 65 $ 11.00 $ 715.00 - $ 12.00 $ . - $ 12.00 $ . 15 $ 13.00 $ 195.00 3,220 Total COGS Total Inventory

Weighted Average Quantity Purcahse COGS Unit Cost Total Cost Quantity Unit Cost Total Cost Date 1-Sep-20 8-Sep-20 14-Sep-20 Inventory on hand Quantity Unit Cost Total Cost 80 $ 10.00 $ 800.00 100 $ 11.00 $ 1,100.00 70 $ 12.00 $ 840.00 100 $ 11.00 70 $ 12.00 $ 1,100.00 $ 840.00 250 $ 10.96 $ 2,740.00 15-Sep-20 (90) $ 10.96 $ (986.40) 160 $ 10.96 $ 1,753.60 19-Sep- 20 8 5 $ 12.00 $1,020.00 160 $ 10.96 $ 1,753.60 85 $ 12.00 $ 1,020.00 245 $ 11.32 $ 2,773.60 21-Sep-20 (100) $ 11.32 $(1,132.08) 145 $ 11.32 $ 1,641.52 22-Sep-20 90 $ 13.00 $ 1,170.00 145 $ 11.32 $ 1,641.52 90 $ 13.00 $ 1,170.00 235 $ 11.96 $ 2,811.52 28-Sep-20 (75) $ 11.96 $ (897.29) 160 $ 11.96 $ 1,914.23 Total COGS Total Inventory $ 3,015.77 $ 1,914.23