Question

Unit Cost $3.00 400 Beginning inventory, January 1 Transactions During the year: a. Purchase, January 30 b. Purchase, May1 c. Sale ($5 each) d. Sale ($5 each) 3.40 4.00 300 460 (160) (700) Required: a. Compute the amount of goods available for sale. Goodsavailableforsalets-4060] b. & c. Compute the amount of ending inventory and cost of goods sold at December 31, under Average cost, First-in, first-out, Last-in, f Specific identification, assuming that the first sale was selected two-fifths from the beginning inventory and three-fifths from the purchase the remainder of the beginning inventory, with the balance from the purchase of May 1. (Do not round intermediate calculations. Roun First-in,Last-In Specific First-Out Identification Average Cost First-Out Ending inventory Cost of goods sold

Answer 1

Answer a.

Cost of Goods available for sale = 400 * $3.00 + 300 * $3.40 + 460 * $4.00
Cost of Goods available for sale = $4,060

Answer b.

FIFO:

Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Goods Ending FIFO Cost per Cost per Cost of Cost per # of units Available for | # of units # of units Goods Sold unit Inventory unit unit Sale Beginning Invento 400 3.00 1200 400 3.00 1200 0 3.00 0 Purchases: 3.40 January 30 300 3.40 1020 300 1020 0 3.40 0 May 1 460 4.00 4.00 1200 1840 160 640 300 4.00 Total 1160 1200 4060 860 2860 300

LIFO:

Cost of Goods Available for Sale Cost of Goods Sold Ending Invento Cost of Goods Ending LIFO Cost per Cost per Cost of Cost per # of units Available for | # of units Goods Sold | # of units unit Inventory unit unit Sale Beginning Inventory 400 3.00 1200 100 3.00 300 300 3.00 900 Purchases: January 30 300 3.40 1020 300 3.40 1020 0 3.40 0 May 1 460 460 4.00 4.00 4.00 1840 1840 0 0 Total 1160 4060 860 3160 300 900

Weighted Average:

Cost of Goods Available for Sale Cost of Goods Sold Ending Invento Cost of Goods Ending Average Cost Cost perCost of Cost per Cost per # of units Available for | # of units # of units Goods Sold unit Inventory unit unit Sale Beginning Invento 400 3.00 1200 Purchases: January 30 300 3.40 1020 May 1 460 4.00 1840 Total 1160 3.50 4060 860 3.50 3010 300 3.50 1050

Specific Identification:

Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Goods Ending Specific Identification Cost per Cost per Cost of Cost per # of units Available for | # of units # of units Goods Sold unit Inventory unit unit Sale Beginning Invento 400 3.00 1200 400 3.00 1200 0 3.00 0 Purchases: 694 January 30 300 3.40 1020 96 3.40 326.4 204 3.40 May 1 460 4.00 96 384 4.00 1840 364 1456 4.00 Total 1160 4060 860 2982 300 1078