Perpetual Inventory System Helps us to Value Inventory
Before going through answer read below points so they will give more clarification
1.I have provide answer in Debit-Credit Form and after each transaction you will get Closing and Opening Balance.
2.Final Answers are Highlighted in GREEN Color and total column color in Light Blue Color
Summary of Answer is as Under :
Specific Identification Method - $925
Weighted Average Method - $918
FIFO - $910
LIFO -$930
1.Specific Identification Method - It is Simple ..which means rate at which quantity purchased which exist at closing stock must be value at actual purchase rate.and question provided us information as under :
Specific Identification Method | ||
Qty | Rate ($) | Amount |
180 | 4.5 | 810 |
5 | 5 | 25 |
15 | 6 | 90 |
Total Closing Stock Value | 925 |
2.WEIGHTED AVERAGE METHOD - In this Method stock valued at Weighted Average Rate
WEIGHTED AVERAGE METHOD | |||||||||
Date | Particular (Debit) | Qty | Rate ($) | Amount | Date | Particular (Credit) | Qty | Rate ($) | Amount |
01/01/XXXX | Opening Inventory | 140 | 6 | 840 | 10/01/XXXX | Sales | 100 | 6 | 600 |
Closing Balance | 40 | 6 | 240 | ||||||
Total | 140 | 840 | Total | 140 | 840 | ||||
Opening Balance | 40 | 6 | 240 | ||||||
20/01/XXXX | Purchase | 60 | 5 | 300 | Closing Balance | 100 | 5.4 | 540 | |
Total | 100 | 540 | Total | 100 | 540 | ||||
Opening Balance | 100 | 5.4 | 540 | 25/01/XXXX | Sales | 80 | 5.4 | 432 | |
Closing Balance | 20 | 5.4 | 108 | ||||||
Total | 100 | 540 | Total | 100 | 540 | ||||
Opening Balance | 20 | 5.4 | 108 | 31/01/XXXX | Closing Balance | 200 | 4.59 | 918 | |
30/01/XXXX | Purchase | 180 | 4.5 | 810 | |||||
Total | 200 | 918 | 200 | 918 |
3.FIFO Method - in this Method Stock which is first purchase is deemed as first consumed
FIFO | |||||||||
Date | Particular (Debit) | Qty | Rate ($) | Amount | Date | Particular (Credit) | Qty | Rate ($) | Amount |
01/01/XXXX | Opening Inventory | 140 | 6 | 840 | 10/01/XXXX | Sales | 100 | 6 | 600 |
Closing Balance | 40 | 6 | 240 | ||||||
Total | 140 | 840 | Total | 140 | 840 | ||||
Opening Balance | 40 | 6 | 240 | Closing Balance-1 | 40 | 6 | 240 | ||
20/01/XXXX | Purchase | 60 | 5 | 300 | -2 | 60 | 5 | 300 | |
Total | 100 | 540 | Total | 100 | 540 | ||||
Opening Balance | 40 | 6 | 240 | 25/01/XXXX | Sales | 40 | 6 | 240 | |
60 | 5 | 300 | 40 | 5 | 200 | ||||
Closing Balance | 20 | 5 | 300 | ||||||
Total | 100 | 540 | Total | 100 | 540 | ||||
Opening Balance | 20 | 5 | 100 | 31/01/XXXX | Closing Balance-1 | 20 | 5 | 100 | |
30/01/XXXX | Purchase | 180 | 4.5 | 810 | 31/01/XXXX | -2 | 180 | 4.5 | 810 |
Total | 200 | 910 | 200 | 910 |
4. LIFO Method - In this method Stock which is Purchase last will be sold first
LIFO | |||||||||
Date | Particular (Debit) | Qty | Rate ($) | Amount | Date | Particular (Credit) | Qty | Rate ($) | Amount |
01/01/XXXX | Opening Inventory | 140 | 6 | 840 | 10/01/XXXX | Sales | 100 | 6 | 600 |
Closing Balance | 40 | 6 | 240 | ||||||
Total | 140 | 840 | Total | 140 | 840 | ||||
Opening Balance | 40 | 6 | 240 | Closing Balance-1 | 40 | 6 | 240 | ||
20/01/XXXX | Purchase | 60 | 5 | 300 | -2 | 60 | 5 | 300 | |
Total | 100 | 540 | Total | 100 | 540 | ||||
Opening Balance | 40 | 6 | 240 | 25/01/XXXX | Sales | 60 | 5 | 300 | |
60 | 5 | 300 | 20 | 6 | 120 | ||||
Closing Balance | 20 | 6 | 120 | ||||||
Total | 100 | 540 | Total | 100 | 540 | ||||
Opening Balance | 20 | 6 | 120 | 31/01/XXXX | Closing Balance-1 | 20 | 6 | 120 | |
30/01/XXXX | Purchase | 180 | 4.5 | 810 | 31/01/XXXX | -2 | 180 | 4.5 | 810 |
Total | 200 | 930 | 200 | 930 |
Laker Company reported the following January purchases and sales data for its only product. Date Activities...
Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 200 units @ $ 12.50 = $ 2,500 Jan. 10 Sales 160 units @ $ 21.50 Jan. 20 Purchase 130 units @ $ 11.50 = 1,495 Jan. 25 Sales 140 units @ $ 21.50 Jan. 30 Purchase 300 units @ $ 11.00 = 3,300 Totals 630 units $ 7,295 300 units The...
Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 150 units @ $ 7.50 = $ 1,125 Jan. 10 Sales 110 units @ $ 16.50 Jan. 20 Purchase 80 units @ $ 6.50 = 520 Jan. 25 Sales 90 units @ $ 16.50 Jan. 30 Purchase 200 units @ $ 6.00 = 1,200 Totals 430 units $ 2,845 200 units The...
Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 190 units @ $ 7.00 = $ 1,330 Jan. 10 Sales 150 units @ $ 16.00 Jan. 20 Purchase 110 units @ $ 6.00 = 660 Jan. 25 Sales 130 units @ $ 16.00 Jan. 30 Purchase 280 units @ $ 5.50 = 1,540 Totals 580 units $ 3,530 280 units The...
Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 240 units @ $ 16.50 = $ 3,960 Jan. 10 Sales 190 units @ $ 25.50 Jan. 20 Purchase 170 units @ $ 15.50 = 2,635 Jan. 25 Sales 190 units @ $ 25.50 Jan. 30 Purchase 380 units @ $ 15.00 = 5,700 Totals 790 units $ 12,295 380 units The...
Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 185 units @ $ 11.00 = $ 2,035 Jan. 10 Sales 145 units @ $ 20.00 Jan. 20 Purchase 100 units @ $ 10.00 = 1,000 Jan. 25 Sales 125 units @ $ 20.00 Jan. 30 Purchase 270 units @ $ 9.50 = 2,565 Totals 555 units $ 5,600 270 units The...
Laker Company reported the following January purchases and sales data for its only product Date Activities Units Sold at Retail Units Acquired at Cost 180 units 56.40 = $ 1,152 Jan. 1 Beginning 120 units @ $15.80 inventory Jan. 10 Sales Jan.20 Purchase Jan. 25 Sales 100 units 20 = 540 100 units @ $15.80 Jan. 30 Purchase 220 unitsga.90 1,078 Totals 500 units $2,770 220 units The Company uses a periodic inventory system. For specific identification, ending inventory consists...
Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 215 units @ $ 14.00 = $ 3,010 Jan. 10 Sales 165 units @ $ 23.00 Jan. 20 Purchase 160 units @ $ 13.00 = 2,080 Jan. 25 Sales 190 units @ $ 23.00 Jan. 30 Purchase 355 units @ $ 12.00 = 4,260 Totals 730 units $ 9,350 355 units...
Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 185 units @ $ 11.00 = $ 2,035 Jan. 10 Sales 145 units @ $ 20.00 Jan. 20 Purchase 100 units @ $ 10.00 = 1,000 Jan. 25 Sales 125 units @ $ 20.00 Jan. 30 Purchase 270 units @ $ 9.50 = 2,565 Totals 555 units $ 5,600 270 units The...
Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 185 units @ $ 11.00 = $ 2,035 Jan. 10 Sales 145 units @ $ 20.00 Jan. 20 Purchase 100 units @ $ 10.00 = 1,000 Jan. 25 Sales 125 units @ $ 20.00 Jan. 30 Purchase 270 units @ $ 9.50 = 2,565 Totals 555 units $ 5,600 270 units The...
Laker Company reported the following January purchases and sales data for its only product. Units sold at Retail Units Acquired at Cost 165 units@ $9.00 = $1,485 125 units @ $18.00 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 110 units@ $8.00 = 880 125 units @ $18.00 230 units@ $7.50 = 505 units 1,725 $4,090 250 units The Company uses a perpetual inventory system. For specific identification, ending...