Question

I am having a hard time with Fifo/Lifo and am confused how to finish this.

Inside Track, a regional convenience store chain, maintains milk inventory by the gallon. The first month's milk purchases and sales at its Denver, Colorado, location follow: (Click the icon to view the purchases and sales.) Read the requirements.? Ele-15 Requirement 1. Determine the amount that would be reported in ending merchandise inventory on May 15 using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter all amounts to the nearest cent, $X.XX. Enter the oldest inventory layers first.) Quantity Date May 2 Purchases Unit Total Cost Cost $1.60 $16.00 $1.90 3,80 Cost of Goods Sold Inventory on Hand Unit Total Unit Total Quantity Cost Cost Quantity Cost Cost To $1.60 $10,00 Lo $1.60 $16.00 $7.90 *3.9 4 $1.60 $6.40 6 $1.60 $9.601 2 $1.90 33.80 16 $1.60 $9.60 2 +1.90 3.80 $2.35 $4.70 4 31.60 $6.40 2 F1.60 $3.20 2 $1,90 53.80 2 $2.35 $4.70 -8 $12,80 $11.70 132 32.35 34.70 PM $24.50 Totals 14 Requirement 2. Determine the amount that would be reported in ending merchandise inventory on May 15 using the LIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter all amounts to the nearest cent, $X.XX. Enter the oldest inventory layers first.)

Answer 1

Requirement 1 - Determination of Ending Inventory using FIFO Method: Under FIFO, the Inventory which is purchased first, will be sold and the balance will be in Inventory. Purchases Cost of goods sold Inventory on Hand Date Unit Total Unit Total Unit Total Quantity Quantity Quantity Cost Cost Cost Cost Cost Cost May 2 10 | $ 1.60 | $ 16.00 10 | $ 1.60 16.00 May 6 2 | $ 1.90 | $ 3.80 10 | $ 1.60 1.90 जी 16.00 3.80 May 8 4 | $ 1.60 $ 6.40 जी 1.60 1.90 9.60 3.80 2 | $ May 13 2 $ 2.35 | $ 4.70 | जी 9.60 " 1.60 1.90 3.80 " पीजी 2.35 4.70 " May 14 4 | $ 1.60 | $ 6.40 2 |$ 1.605 1.90 $ 2.35] $ 3.20 3.80 4.70 11.70 " 14 | 24.50 | 12.80

Requirement 2- Determination of Ending Inventory using LIFO Method: Under LIFO, the Inventory which is purchased last, will be sold and the purchases which are made first will be in Inventory. Purchases Cost of goods sold Inventory on Hand Date Unit Total Unit Total Unit Total Quantity Quantity Cost Cost Cost Cost Quantity Cost Cost May 2 10 $ 1.60 $ 16.00 10 $ 1.60 $ 16.00 May 6 2 $ 1.90 $ 3.80 10 $ 1.60 1.90 16.00 3.80 $ $ May 8 1.90 $ 1.60 $ 8 $ 2 2 3.80 3.20 1.60 $ $ $ 12.80 May 13 2 $ 2.35 $ 4.70 1.60 2.35 a NO $ $ 12.80 4.70 May 14 6 $ 1.60 $ 9.60 2 2 $ $ 2.35 1.60 $ $ $ 4.70 3.20 14.90 14 $ 24.50 $ 9.60

Requirement 3 - Determination of Ending Inventory using Weighted average Method: Under Weighted-Average Method, the Cost of goods sold is calculated using the Average Cost determined by dividing the Total Cost with Total Units. Purchases Cost of goods sold Inventory on Hand Date Unit Total Total Unit Total Quantity Quantity Quantity Cost Cost Cost Cost Cost Cost May 2 10 $ 1.60 $ 16.00 1.60 $ 16.00 Unit जी पी May б 2 $ 1.90 $ 3.80 10 2 $ $ 1.60 1.90 1.65 $ $ 16.00 3.80 19.80 $ May 8 4 $ 1.65 $ 6.60 1.65 $ 13.20 May 13 2 $ 2.35 $ 4 70 8 पी पीजी 1.65 $ 2.35 1.79 $ 13.20 4.70 17.90 10 May 14 $ 1.79 4 $ 8 | 1.79 $ $ 7.16 13.76 | 14 | 10.74 10.74 $ 6 6 | 24.50 | $ $