Question

Better Bottles, Inc. uses a periodic inventory system and has provided its current inventory information. The Controller has as you to prepare a comparison of the Ending Inventory and Cost of Goods Sold totals for three different inventory costing methods: Periodic FIFO, LIFO, and Weighted-Average. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. • Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell,"=B5" was entered, the formula would output the result from cell B5, or 27 in this example. • Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add), - (minus sign to subtract), * (asterisk sign to multiply), and / (forward slash to divide). From the Excel Simulation below, if in a blank cell"=B4+B5" was entered, the formula would add the values from those cells and output the result, or 47 in this example. If using the other math symbols the result would output an appropriate answer for its function. • SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank cell"=SUM(C4,C5,C6)" was entered, the formula would output the result of adding those three separate cells, or $72.00 in this example. Similarly, if in a blank cell"=SUM(C4:C6)" was entered, the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be $72.00 in this example.

answers in yellow tab must be in formula mode no numbers thanks!

Answer 1

16 A B C D E F 1 Better Bottles, Inc., uses a periodic inventory system and has the following information available: 2 3 Description # of Units Cost per Unit Total Cost 4 Beginning Inventory 20 $ 20.00 $ 400.00 5 Jan. 15 Purchase 27 $ 22.00 $ 594.00 6 Jan. 20 Purchase 33 $ 30.00 $ 990.00 7 Goods available for Sale 80 $ 1,984.00 8 Less : January Sales 36 9 Ending Inventory 44 10 11 12 Required : 13 1) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic FIFO. 14 15 FIFO Ending Inventory Description # of Units Cost per Unit Total Cost 17 Jan. 20 Purchase 33 $ 30.00 $ 990.00 18 Jan. 15 Purchase 11 $ 22.00 $ 242.00 19 44 $ 1,232.00 20 21 FIFO Cost of Goods Sold 22 Description # of Units Cost per Unit Total Cost 23 Beginning Inventory 20 $ 20.00 $ 400.00 24 Jan. 15 Purchase 16 $ 22.00 $ 352.00 25 36 $ 752.00 26 27 2) Calculate both the Ending Inventory and cost of Goods Sold using Periodic LIFO. 28 29 LIFO Ending Inventory 30 Description # of Units Cost per Unit Total Cost 31 Beginning Inventory 20$ 20.00 $ 400.00 32 Jan. 15 Purchase 24 $ 22.00 $ 528.00 33 44 $ 928.00

= $ 34 35 LIFO Cost of Goods Sold 36 Description # of Units Cost per Unit Total Cost 37 Jan. 20 Purchase 33 $ 30.00 $ 990.00 38 Jan. 15 Purchase 3 $ 22.00 $ 66.00 39 36 $ 1,056.00 40 41 3) Using Periodic Weighted Average, First Calculate the cost per Unit using the Formula below. 42 Next, apply that same cost per unit to calculate both the Ending Inventory and Cost of Goods Sold. 43 44 45 Weighted Cost of Goods available for Sale 46 Average Cost = Number of Units available for Sale $ 24.80 Per Unit 47 48 Weighted Average Inventory 49 # of Units Cost per Unit Total Cost 50 44 $ 24.80 $ 1,091.20 51 52 Weighted Average Cost of Goods Sold 53 # of Units Cost per Unit Total Cost 54 36 $ 24.80 $ 892.80 55 56 4) Use the given information and your calculated numbers to complete the cost of Goods Sold 57 Equation below for all three inventory methods. (All Numbers should be positive.) 58 Particulars FIFO LIFO Wtd. Avg. 59 Beginning Inventory $ 400.00 $ 400.00 $ 400.00 60 Add : Purchases $ 1,584.00 $ 1,584.00 $ 1,584.00 61 Goods available for Sale $ 1,984.00 $ 1,984.00 $ 1,984.00 62 Less : Ending Inventory $ 1,232.00 $ 928.00 $ 1,091.20 63 Cost of Goods Sold $ 752.00 $ 1,056.00 $ 892.80 64

Formulas :

If the below Formulas are Used, the above results shall come.

E А B С D 1 Better Bottles, Inc., uses a periodic inventory system and has the following information available: 2 3 Description # of Units Cost per Unit Total Cost 4 Beginning Inventory 20 20 =B4*C4 5 Jan. 15 Purchase 27 22 =B5*C5 6 Jan. 20 Purchase 33 30 =B6*C6 7 Goods available for Sale =SUM(B4:B6) =SUM(D4:06) 8 Less : January Sales 36 9 Ending Inventory =B7-B8 10 11 12 Required : 13 1) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic FIFO. 14 15 FIFO Ending Inventory 16 Description # of Units Cost per Unit Total Cost 17 Jan. 20 Purchase =C6 =B17*C17 18 Jan. 15 Purchase =B9-B17 =C5 =B18*C18 19 =SUM(B17:B18) =SUM(D17:D18) 20 21 FIFO Cost of Goods Sold 22 Description # of Units Cost per Unit Total Cost 23 Beginning Inventory =B4 =C4 =B23*C23 24 Jan. 15 Purchase =B25-B23 =C5 =B24*C24 25 36 =SUM(D23:D24) 26 27 2) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic LIFO. 28 29 LIFO Ending Inventory 30 Description # of Units Cost per Unit Total Cost 31 Beginning Inventory =B4 =C4 =B31*C31 32 Jan. 15 Purchase =B33-B31 =C5 =B32*C32 33 44 =SUM(D31:032) =B6

Per Unit 34 35 LIFO Cost of Goods Sold 36 Description # of Units Cost per Unit Total Cost 37 Jan. 20 Purchase =B6 =C6 =B37*C37 38 Jan. 15 Purchase =B39-B37 =C5 =B38*C38 39 36 =SUM(D37:038) 40 41 3) Using Periodic Weighted Average, First Calculate the cost per Unit using the Formula below. 42 Next, apply that same cost per unit to calculate both the Ending Inventory and cost of Goods Sold. 43 44 45 Weighted Cost of Goods availab 46 Average Cost = Number of Units avail =D7/B7 47 48 Weighted Average Inventory 49 # of Units Cost per Unit Total Cost 50 =B9 =E46 =B50*C50 51 52 Weighted Average Cost of Goods Sold 53 # of Units Cost per Unit Total Cost 54 =B8 =E46 =B54*C54 55 56 4) Use the given information and your calculated numbers to complete the cost of Goods Sold 57 Equation below for all three inventory methods. (All Numbers should be positive.) 58 Particulars FIFO LIFO Wtd. Avg. 59 Beginning Inventory =$D$4 =$D$4 =$D$4 60 Add : Purchases =SUM($D$5:$D$6) =SUM($D$5:$D$6) =SUM($D$5:$D$6) 61 Goods available for Sale =SUM(B59:360) =SUM(C59:C60) =SUM(D59:060) 62 Less : Ending Inventory =D19 =D33 =D50 63 Cost of Goods Sold =B61-362 =C61-C62 =D61-D62 64