Question

i beg for someone to help me:

july 1 beg inv: 200 units $5 unit cost   $1000 tot cost

july 12 purchase: 500 units $7 unit cost $3,500 tot cost

july 23 purchase: 700 units $8 unit cost $5,600 tot cost

july 31 end inv: 150 units

a) compute the ending inventory (a) FIFO, (b) LIFO, and (c) average cost.

b) how many units were sold?

c) what is gross profit for (a) FIFO, (b) LIFO, and (c) average cost.

Answer 1

Solution a:

Computation of COGS and ending inventory - Periodic FIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	200	$5.00	$1,000	200	$5.00	$1,000.00	0	$5.00	$0.00
Purchases:
12-Jul	500	$7.00	$3,500	500	$7.00	$3,500.00	0	$7.00	$0.00
13-Jul	700	$8.00	$5,600	550	$8.00	$4,400.00	150	$8.00	$1,200.00
Total	1400		$10,100	1250		$8,900.00	150		$1,200.00

Computation of COGS and ending inventory - Periodic LIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	200	$5.00	$1,000	50	$5.00	$250.00	150	$5.00	$750.00
Purchases:
12-Jul	500	$7.00	$3,500	500	$7.00	$3,500.00	0	$7.00	$0.00
13-Jul	700	$8.00	$5,600	700	$8.00	$5,600.00	0	$8.00	$0.00
Total	1400		$10,100	1250		$9,350.00	150		$750.00

Computation of COGS and ending inventory - Periodic Weighted Average cost method
Particulars	Cost of goods available for sale			Cost of goods sold - Average cost			Ending Inventory - Average cost
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	200	$5.00	$1,000
Purchases:
12-Jul	500	$7.00	$3,500
13-Jul	700	$8.00	$5,600
Total	1400	$7.21	$10,100	1250	$7.21	$9,018	150	$7.21	$1,082

Solution b:

Nos of units sold = Units available for sale - Units in ending inventory = 1400 - 150 = 1250 units

Note: Part c could not be answered as selling price of unit sold is not provided in question.