Question

Sport Box sells a wide variety of sporting equipment. The following is information on the purchases and sales of their top selling hockey stick. The hockey stick sells for $130 and had transactions as follows:

1. Mar 1st beginning inventory 5 units at $30 per unit
2. Mar 3rd sold 3 units
3. Mar 6th purchased inventory 30 units at $40 per unit
4. Mar 17th sold 20 units
5. Mar 23rd purchased inventory 25 units at $50 per unit
6. Mar 31st sold 30 units

Required: Use the information above to answer the questions below for First In First Out (FIFO) and Moving Weighted Average (MWA) inventory costing methods.  

ROUND ALL ANSWERS TO 2 DECIMAL PLACES

What is the Cost of Goods Sold for the Mar 3rd sale under FIFO inventory costing?

What is the Cost of Goods Sold for the Mar 17th sale under FIFO inventory costing?

What is the Cost of Goods Sold for the Mar 31st sale under FIFO inventory costing?

What is the ending inventory on Mar 31st under the FIFO inventory costing?

What is the Cost of Goods Sold for the Mar 17th sale under MWA inventory costing?

What is the Cost of Goods Sold for the Mar 31st sale under MWA inventory costing?

What is the ending inventory on Mar 31st under the MWA inventory costing?

What is the Gross Profit for the month of March under the MWA inventory costing?

Answer 1

Requirement | Ending Inventory, COGS - Weighted Average Cost Goods Purchased Cost of goods sold Date Units Price Total Units Price Total Mar. 1 Inventory Balance Units Price Total 5 $ 30.00 $ 150 Mar. 3 3$ 30$ 90 2$ 30.00 $ 2 $ 30.00 $ 60 60 Mar. 6 30 $ 40 $ 1,200 2 $ 30.00 $ 30 $ 40.00 $ 32$ 39.38 $ 60 1,200 1,260 Mar. 17 20 $ 39.38 $ 788 12$ 39.38 $ 473 Mar. 23 25 $ 50.00 $ 1,250 12$ 39.38$ 25 $ 50.00 $ 37 $ 46.55 $ 473 1,250 1,723 Mar. 31 30 $ 46.55 $ 1,397 7$ 46.55 $ 326 Total 55 2,450 53 2,274 7 326

Requirement | Ending Inventory, COGS - FIFO Under FIFO Method, the goods which are brought first are sold first. Goods Purchased Cost of goods sold Date Units Price Total Units Price Total Mar. 1 Inventory Balance Units Price Total 5 $ 30.00 $ 150 Mar. 3 3 $ 30.00 $ 90 2$ 30.00 $ 60 Mar. 6 30 $ 40.00 $ 1,200 2$ 30.00 $ 30 $ 40.00 $ 60 1,200 Mar. 17 2 18 $ 30.00 $ $ 40.00 $ 60 720 $ 30.00 $ $ 40.00 $ 12 480 Mar. 23 25 $ 50.00 $ 1,250 12 $ 40.00 $ 25 $ 50.00 $ 480 1,250 Mar. 31 12 18 $ 40.00 $ $ 50.00 $ 480 900 $ 40.00 $ 7 $ 50.00 $ 350 Total 55 2,450 53 2,250 7 350 Conclusion Cost of Goods Sold for the Mar 3rd Sale under FIFO Inventory Costing $ 90.00 Cost of Goods Sold for the Mar 17th Sale under FIFO Inventory Costing $ 780.00 Cost of Goods Sold for the Mar 31st Sale under FIFO Inventory Costing $ 1,380.00 Ending Inventory on Mar 31st under FIFO Inventory Costing $ 350.00 Cost of Goods Sold for the Mar 17th Sale under MWA Inventory Costing $ 787.50 Cost of Goods Sold for the Mar 31st Sale under MWA Inventory Costing $ 1,396.62 Ending Inventory on Mar 31st under MWA Inventory Costing $ 325.88 Gross Profit for the month of March under the MWA Inventory Costing $ 4,615.88