Question

Specific Identification, FIFO, LIFO, and Weighted Average Boyce Company's beginning inventory and purchases during the fiscal year ended September 30, 20-2, are shown. October 1, 20-1 Beginning inventory October 18 1st purchase November 25 2nd purchase January 12, 20-2 3rd purchase March 17 4th purchase Units Unit Price Total Cost 400 $15.00 $6,000 300 16.50 4,950 600 17.00 10,200 700 17.25 12,075 800 18.00 14,400 400 19.00 7,600 300 21.00 6,300 500 21.75 10,875 4,000 $72,400 June 2 5th purchase 6th purchase August 21 September 27 7th purchase Use the following information for the specific identification method. There are 900 units of inventory on hand on September 30, 20-2. Of these 900 units: 50 are from October 18, 20-1 300 are from January 12, 20-2 100 are from March 17 200 are from June 2 1st purchase 3rd purchase 4th purchase Sth purchase Check My Work S more Check My Work uses remaining, All work saved Email Instructe dtv A 3 4 5 6 7 8

can someone help me as soon as possible please

Answer 1

Solution:

		Cost of goods sold	Cost of Ending inventory
1	FIFO	53,325	19075
2	LIFO	58,050	14350
3	Weighted average	56,110	16,290
4	Specific Identification	55,400	17,000

Explanation

Beginning inventory + purchases = 4,000 units

Ending inventory = 900 units

Goods sold = 4000 - 900 = 3100 units

1.

FIFO:

Cost of goods sold = (400 x 15) + (300 x 16.50) + (600 x 17) + (700 x 17.25) + (800 x 18) + (300 x 19)

= 6000 + 4950 + 10200 + 12075 + 14400 + 5700

= 53,325

Ending inventory = (100 x 19) + (300 x 21) + (500 x 21.75) = 1900 + 6300 + 10875 = 19075

2.

LIFO

Cost of goods sold = (500 x 21.75) + (300 x 21) + (400 x 19) + (800 x 18) + (700 x 17.25) + (400 x 17)

= 10875 + 6300 + 7600 + 14400 + 12075 + 6800

= 58,050

Ending inventory = (200 x 17) + (300 x 16.50) + ( 400 x 15) = 3400 + 4950 + 6000 = 14350

3.

Weighted average

Average price = Total cost / units = 72400 / 4000 = 18.1

Cost of goods sold = 3100 x 18.1 = 56,110

Ending inventory = 900 x 18.1 = 16,290

4.

Specific identification

Ending inventory = (50 x 16.50) + (300 x 17.25) + (100 x 18) + (200 x 19) + (50 x 21) + (200 x 21.75)

= 825 + 5175 + 1800 + 3800 + 1050 + 4350

= 17,000

Cost of goods sold = (250 x 16.50) + (400 x 17.25) + (700 x 18) + (200 x 19) + (250 x 21) + (300 x 21.75) + (400 x

15) + (600 x 17)

= 4125 + 6900 + 12600 + 3800 + 5250 + 6525 + 6000 + 10200

= 55,400