Question

Given the following information, determine the journal entries:    

a. using the weighted average perpetual inventory method.

b. using the LIFO perpetual inventory method.

c. using the FIFO perpetual inventory method.

March beginning inventory is 5 units at $6 per unit.             

March 3: 15 units were purchased at $7 per unit.
March 11: 10 units were purchased at $9 per unit.

March 15: 20 units were sold at $15 per unit.

March 18: 35 units were purchased at $10 per unit.
March 31: 30 units were sold at $20 per unit.

Required        

1) compute the cost of goods sold on March 15 and March 31 for a, b, c.

2) compute the ending inventory for a, b, c.

3) make the journal entries necessary for March 15 and March 31 for a. b. c.  

CALCULATE JOURNAL ENTRIES FROM ABOVE INFORMATION:

JOURNAL ENTRIES:

b.

example for a, b, and c

Answer 1

Date	Purchased Units	Purchase Price	Sold Units	Sale Price			Date	Purchased Units	Purchase Price	Tota Price
Beginning	5	6					Beginning	5	6	30
March 3	15	7					March 3	15	7	105
March 11	10	9					March 11	10	9	90
March 15			20	15			Total	30		225
March 18	35	10					Average Price on 15th March	225/30=7.5
March 31			30	20
Average Price as on 15th March							Date	Purchased Units	Purchase Price	Tota Price
		FIFO	LIFO	Average			March 11	10	7.5	75
Cost of Goods Sold 15th March		(5*6)+(15*7)	(10*9)+(10*7)	20*7.5			March 18	35	10	350
		135	160	150			Total	45		425
							Average Price on 31st March	425/45=9.44		9.444444
Cost of Goods Sold 31st March		(10*9)+(20*10)	(30*10)	30*9.44
		290	300	283
Ending Inventory		15*10	(5*10)+(5*7)+(5*6)	(15*9.44)
		150	115	142
Journal:
Sale 15th March	Cash (20*15)	300	300	300
	Sale	300	300	300
COGS 15th March	Cost of Goods Sold Debit	135	160	150
	Inventory Credit	135	160	150
Sale 31st March	Cash (30*20)	600	600	600
	Sale	600	600	600
COGS 31st March	Cost of Goods Sold Debit	290	300	283
	Inventory Credit	290	300	283