The units of an item available for sale during the year were as follows:
| January 1 | Inventory | 40 Units at $165 | $6,600 |
| August 13 | Purchase | 200 Units at $180 | $36,000 |
| November 30 | Purchase | 60 Units at $200 | $12,000 |
| Available for Sale | 300 Units | $54,600 |
There are 75 Units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weighted average cost method.
Answers
|
Ending Inventory |
|
|
FIFO |
$ 14,700 |
|
LIFO |
$ 12,900 |
|
Weighted Average |
$ 13,650 |
--Workings
|
FIFO |
Cost of Goods available for sale |
Cost of Goods Sold |
Ending Inventory |
||||||
|
Units |
Cost/unit |
COG for sale |
Units sold |
Cost/unit |
COGS |
Units |
Cost/unit |
Ending inventory |
|
|
Beginning Inventory |
40 |
$ 165.00 |
$ 6,600.00 |
40 |
$ 165.00 |
$ 6,600.00 |
0 |
$ 165.00 |
$ - |
|
Purchases: |
|||||||||
|
13-Aug |
200 |
$ 180.00 |
$ 36,000.00 |
185 |
$ 180.00 |
$ 33,300.00 |
15 |
$ 180.00 |
$ 2,700.00 |
|
30-Nov |
60 |
$ 200.00 |
$ 12,000.00 |
0 |
$ 200.00 |
$ - |
60 |
$ 200.00 |
$ 12,000.00 |
|
TOTAL |
300 |
$ 54,600.00 |
225 |
$ 39,900.00 |
75 |
$ 14,700.00 |
|||
|
LIFO |
Cost of Goods available for sale |
Cost of Goods Sold |
Ending Inventory |
||||||
|
Units |
Cost/unit |
COG for sale |
Units sold |
Cost/unit |
COGS |
Units |
Cost/unit |
Ending inventory |
|
|
Beginning Inventory |
40 |
$ 165.00 |
$ 6,600.00 |
0 |
$ 165.00 |
$ - |
40 |
$ 165.00 |
$ 6,600.00 |
|
Purchases: |
|||||||||
|
13-Aug |
200 |
$ 180.00 |
$ 36,000.00 |
165 |
$ 180.00 |
$ 29,700.00 |
35 |
$ 180.00 |
$ 6,300.00 |
|
30-Nov |
60 |
$ 200.00 |
$ 12,000.00 |
60 |
$ 200.00 |
$ 12,000.00 |
0 |
$ 200.00 |
$ - |
|
TOTAL |
300 |
$ 54,600.00 |
225 |
$ 41,700.00 |
75 |
$ 12,900.00 |
|||
|
Average Method |
Cost of Goods available for sale |
Cost of Goods Sold |
Ending Inventory |
||||||
|
Units |
Cost/unit |
COG for sale |
Units sold |
Cost/unit |
COGS |
Units |
Cost/unit |
Ending inventory |
|
|
Beginning Inventory |
40 |
$ 165.00 |
$ 6,600.00 |
||||||
|
Purchases: |
|||||||||
|
13-Aug |
200 |
$ 180.00 |
$ 36,000.00 |
||||||
|
30-Nov |
60 |
$ 200.00 |
$ 12,000.00 |
||||||
|
TOTAL |
300 |
$ 182.000 |
$ 54,600.00 |
225 |
$ 182.0000 |
$ 40,950.00 |
75 |
$ 182.0000 |
$ 13,650.00 |
The units of an item available for sale during the year were as follows: January 1...