Question

Greeney Enterprises markets the CDs for the performing artist Cara Lotta. At the beginning of March, Greehey had beginning inventory of 1.500 Lotta CDs with a unit cost of $7, During March, Greehey made the following purchases of Lotta CDs. $9 Date: Quantity: Cost: Date: Quantity: Cost: Mar 5 3 ,000 $8 Mar 214,000 $10 Mar 135,500 Mar 26 2,000 $11 During March, 12,500 units were sold. Greehey uses a perpetual inventory system. Prepare answers on an Excel spreadsheet using the following templates Label each answer with the letter in parenthesis. Turn in hard copy of spreadsheet with 2nd copy (ctrl Instructions: (a) Determine the cost of goods available for sale. Date Mar 1 Mar 5 Mar 13 Mar 21 Mar 26 Total COST OF GOODS AVAILABLE FOR SALE Explanation Units Unit Cost Total Cost Text Number Value Formula Text Number Value Formula Text Number Value Formula Text Number Value Formula Text Number Value Formula Formula Formula (b) Determine the ending inventory under FIFO. (c) Determine the COGS under FIFO. FIFO Cost of Goods Sold Date Mar 26 Mar 21 Ending Inventory Units Unit Cost Total Cost Quantity Amount Formula Quantity Amount Formula Formula Formula Title Title Amount Amount Formula (d) Prove the accuracy of the cost of goods sold under FIFO. Proof of Cost of Goods Sold Date Units Unit Cost Total Cost Quantity Amount Formula Mar 5 Quantity Amount Formula Mar 13 Quantity Amount Formula Mar 21 Quantity Amount Formula Formula Formula

Answer 1

a)	COST OF GOODS AVAILABLE FOR SALE
	DATE	EXPLANATION	UNITS	UNIT COST	UNIT COST	TOTAL COST
	MAR 1	OPENING BALANCE	1,500.00	7.00	10,500.00	10,500.00
	MAR 5	PURCHASES	3,000.00	8.00	24,000.00	34,500.00
	MAR 13	PURCHASES	5,500.00	9.00	49,500.00	84,000.00
	MAR 21	PURCHASES	4,000.00	10.00	40,000.00	124,000.00
	MAR 26	PURCHASES	2,000.00	11.00	22,000.00	146,000.00
	TOTAL		16,000.00		146,000.00	146,000.00
			3,500.00
b)	ENDING INVENTORY - FIFO
	DATE	EXPLANATION	UNITS	UNIT COST	UNIT COST	TOTAL COST
	MAR 26	OPENING BALANCE	2,000.00	11.00	22,000.00	22,000.00
	MAR 21	PURCHASES	1,500.00	10.00	15,000.00	37,000.00
	TOTAL		3,500.00	21.00	37,000.00	37,000.00
c)	COGS - FIFO
	DATE	TITLE	UNITS	AMOUNT
		TOTAL COST OF GOODS AVAILABLE	16,000.00	146,000.00
		LESS: CLOSING INVENTORY	(3,500.00)	(37,000.00)
	TOTAL	COGS	12,500.00	109,000.00
D)	PROOF OF COST OF GOODS SOLD
	DATE	EXPLANATION	UNITS	UNIT COST	UNIT COST	TOTAL COST
	MAR 1	OPENING BALANCE	1,500.00	7.00	10,500.00	10,500.00
	MAR 5	PURCHASES	3,000.00	8.00	24,000.00	34,500.00
	MAR 13	PURCHASES	5,500.00	9.00	49,500.00	84,000.00
	MAR 21	PURCHASES	2,500.00	10.00	25,000.00	109,000.00
	TOTAL		12,500.00		109,000.00	109,000.00
d)	ENDING INVENTORY - LIFO
	DATE	EXPLANATION	UNITS	UNIT COST	UNIT COST	TOTAL COST
	MAR 1	OPENING BALANCE	1,500.00	7.00	10,500.00	10,500.00
	MAR 5	PURCHASES	2,000.00	8.00	16,000.00	26,500.00
	TOTAL		3,500.00	15.00	26,500.00	26,500.00
e)	COGS - LIFO
	DATE	TITLE	UNITS	AMOUNT
		TOTAL COST OF GOODS AVAILABLE	16,000.00	146,000.00
		LESS: CLOSING INVENTORY	(3,500.00)	(26,500.00)
	TOTAL	COGS	12,500.00	119,500.00
g)	PROOF OF COST OF GOODS SOLD
	DATE	EXPLANATION	UNITS	UNIT COST	UNIT COST	TOTAL COST
	MAR 26	PURCHASES	2,000.00	11.00	22,000.00	22,000.00
	MAR 21	PURCHASES	4,000.00	10.00	40,000.00	62,000.00
	MAR 13	PURCHASES	5,500.00	9.00	49,500.00	111,500.00
	MAR 5	PURCHASES	1,000.00	8.00	8,000.00	119,500.00
	TOTAL		12,500.00		119,500.00	119,500.00
h)
	1. ENDING INVENTORY			2. COST OF GOODS SOLD
				COST OF GOODS AVAILABLE FOR SALE		146,000.00
	AVERAGE COST PER UNIT		9.13	LESS: ENDING INVENTORY		31937.5	3500*9.13
				COST OF GOODS SOLD		114,062.50