Question

Perpetual System— Calculating Ending Inventory and Cost of Sales using Moving Average, FIFO, and LIFO

April Inc. maintains a perpetual inventory system and recorded the following information for the month of January.

Units Unit Cost 760 $10.50 320 12.00 13.25 Date Inventory, January 1 Purchase, January 10 Purchase, January 20 Purchase, January 28 Sale, January 5 Sale, January 13 Sale, January 31 Inventory, January 31 160 480 400 14.00 160 256 904

Required

Compute ending inventory and cost of goods sold for the month ending January 31 using the method indicated below.

Note: Round your final answers to the nearest dollar.

Note: Do not round costs per unit in your calculations.

	Ending Inventory	COGS
1. Moving average method.
2. FIFO method.
3. LIFO method.

Answer 1

493 494 495 Ans. 1 496 497 1498 Cost of goods sold Rate Total cost Quantity Total cost 5499 400 $10.50 $4,200 Moving average: Purchase Date Quantity Rate 01-Jan 05-Jan 10-Jan 320 $12.00 13-Jan 20-Jan 160 $13.25 28-Jan 480 $14.00 31-Jan $3,840 2500 4501 4502 Balance Rate $10.50 $10.50 $11.21 $11.21 $11.69 $12.64 $12.64 Quantity 760 360 680 520 680 1160 904 Total cost $7 980 $9,780 $7,620 $5,827 $7,947 $14,667 $11,430 160 $11.21 $1,793 $2,120 $6,720 4503 256 $12.64 $3,237 Cost of goods sold Total $9,230 $11,430 Ending inventory 4504 4505 -4506 4507 4508 4509 "Weighted average rate is calculated by using the formula of (Total available balance / Total units available)

14537 Number Styles Cells NE 4 Ans. 2 G Perpetual FIFO: H 100 INOLO Purchase Quantity Rate Total coste Cost of goods sold Rate Quantity Total cost Date 01-Jan 05-Jan 10-Jan 400 $10.50 $4,200 320 $12.00 $3,840 Quantity 760 360 360 320 200 320 200 13-Jan NEL 160 $10.50 $1,680 20-Jan Balance Rate $10.50 $10.50 $10.50 $12.00 $10.50 $12.00 $10.50 $12.00 $13.25 $10.50 $12.00 $13.25 $14.00 160 $13.25 $2,120 Total cost $7,980 $3,780 $3,780 $3,840 $2,160 $3,840 $3,840 $3,840 $2,120 $2,120 $3,840 $2,120 $6,720 28-Jan 480 $14.00 den NO 31-Jan 200 56 $10.50 $12.00 NO $2,100 $672 264 160 480 $12.00 $13.25 $14.00 $3,168 $2,120 $6,720 Ending inventory $12,008 NULUI Total Cost of goods sold $8,652 12 FIFO method the units that have purchased first learWest), ore released the first one and the ending inventory units remain from the last (recent) purchases

Styles Cells as 3 Perpetual LIFO: Purchase Quantity Rate Date 01 Jan 05-Jan Total cost Quantity Cost of goods sold Rate Total cost 10-Jan 400 320 MM $12.00 $10.50 $3,840 $4,200 13-Jan Quantity 760 360 360 320 360 160 360 160 160 $12.00 $1,920 20-Jan 160 $13.25 $2,120 Balance Rate $10.50 $10.50 $10.50 $12.00 $10.50 $12.00 $10.50 $12.00 $13.25 $10.50 $12.00 $13.25 $14.00 $10.50 $12.00 $13.25 $14.00 Total cost $7,980 $3,780 $3,780 $3,840 $3,780 $1,920 $3,780 $1,920 $2,120 $3,780 $1,920 $2,120 $6,720 $3,780 $1,920 $2,120 $3,136 28-Jan 480 160 $14.00 $6,720 31-Jan 256 $14.00 360 160 160 480 360 160 160 224 $3,584 WWW Ending inventory $10,956 Total Gost of goods sold $9,704 In LIFO method the units that have parchased last, are leased with one and the ending inventory W .WWW units remain from the first purchases. WWWMICO Sheet Sheet W W WW W WWWWWWWWWWW

		Ending Inventory		Cost of goods sold
1 Moving average method		$11,430		$9,230
2 FIFO method		$12,008		$8,652
2 LIFO method		$10,956		$9,704