Question

4 The company uses a perpetual inventory system. a. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. b. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. c. Compute the gross margin for each method. pints Complete this question by entering your answers in the tabs below. eBook Required A Required B Required C Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Ask Perpetual FIFO: References Goods Purchased # of units unit Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Date Cost per Inventory Balance # of units Cost per Inventory unit Balance 160 @ $ 2.00 = S 320.00 January 1 January 3 February 14 III February 15 June 30 November 6 November 19 Totals

Answer 1

G Н. I A B С D E F 1 a). 2 Perpetual FIFO: 3 Goods Purchased Cost of goods sold Cost per # of units Cost per Cost of Date #of units 4 unit sold unit goods sold 5 Jan. - 1 6 Jan. - 3 110 $2.00 $220.00 7 Feb. - 14 246 $3.00 8 9 Feb. - 15 50 $2.00 $100.00 10 130 $3.00 $390.00 11 Jun-30 210 $4.00 12 13 Nov.-6 116 $3.00 $348.00 14 42 $4.00 $168.00 15 16 Nov. - 19 68 $5.00 17 Total 448 $1,226.00 Inventory Balance #of Cost per Inventory units unit balance 160 $2.00 $320.00 50 $2.00 $100.00 50 $2.00 $100.00 246 $3.00 $738.00 116 116 210 $3.00 $3.00 $4.00 $348.00 $348.00 $840.00 168 168 68 236 $4.00 $4.00 $5.00 $672.00 $672.00 $340.00 $1,012.00

G H I A B с D E F 19 b). 20 Perpetual LIFO: 21 Goods Purchased Cost of goods sold Cost per # of units Cost per Cost of Date # of units 22 unit sold unit goods sold 23 Jan. - 1 24 Jan. - 3 110 $2.00 $220.00 25 Feb. - 14 246 $3.00 26 27 Feb. - 15 180 $3.00 $540.00 28 29 Jun-30 210 $4.00 30 Nov.-6 158 $4.00 $632.00 31 32 33 Nov. - 19 $5.00 34 Total 448 $1,392.00 35 36 c). 37 Gross margin FIFO LIFO 38 Sales $3,584 $3,584 39 Less: Cost of goods sold $1,226 $1,392 40 Gross margin $2,358 $2,192 Inventory Balance # of Cost per Inventory units unit balance 160 $2.00 $320.00 50 $2.00 $100.00 50 $2.00 $100.00 246 $3.00 $738.00 50 $2.00 $100.00 66 $3.00 $198.00 210 $4.00 $840.00 50 $2.00 $100.00 66 $3.00 $198.00 52 $4.00 $208.00 $5.00 $340.00 236 $846.00 68 68

B с D F G H A 1 a). 2 Perpetual FIFO: 3 Goods Purchased Cost of goods sold Inventory Balance Cost per Date # of units Cost per unit # of units sold Cost of goods sold # of units Cost per unit Inventory balance 4 unit 2 110 2 2 =G5*H5 =G6*H6 =16 =G8*H8 246 3 =H6 3 5 Jan. - 1 6 Jan. - 3 7 Feb. - 14 8 9 Feb. - 15 10 11 11110 12 13 Nov. - 6 =H7 =G7 =180-D9 3 3 =H10 210 160 =D6*E6 =G5-D6 =G6 246 =17 =D10*E10 =G8-D10 =G10 210 =D13*E13 =D14*E14 =G12-D14 =G14 68 =F6+F9+F10+F13+F14 =G15+G16 4 =G10*H10 =110 =G12*H12 4 3 =G11 =158-D13 14 4 4 15 =H14 =G14*H14 =G15*H15 =G16*H16 =I15+116 16 68 5 5 Nov. - 19 Total 17 =D6+D9+D10+D13+D14

А B с D E F G H 1 19 b). 20 Perpetual LIFO: 21 Goods Purchased Cost of goods sold Inventory Balance Cost per Date # of units Cost per unit # of units sold Cost of goods sold # of units Cost per unit Inventory balance unit Jan. - 1 Jan. - 3 Feb. - 14 110 2 22 23 24 25 26 27 =D24*E24 246 3 Feb. - 15 180 3 =D27*E27 28 160 2 =G23-D24 2 =G24 =H24 246 3 =G25 =H25 =G26-D27 3 210 4 =G27 =H27 =G28 =H28 =G29-D30 4 68 5 =G30+G31+G32+G33 =G23*H23 =G24*H24 =124 =G26*H26 =125 =G28*H28 =G29*H29 =127 =128 =G32*H32 =G33*H33 =I30+I31+I32+I33 4 158 4 =D30*E30 5 =D D30 =F24+F27+F30 29 11110 210 30 Nov.- 6 31 32 33 Nov. - 19 68 34 tal 35 36 c). 37 Gross margin 38 Sales 39 Less: Cost of goods sold 40 Gross margin FIFO LIFO =110*8+180*8+158*8 =110*8+180*8+158*8 =F17 =F34 =C38-C39 =D38-139

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