Question

1. Stratege Consulting owns a cellphone store where it buys and sells cellphones as the store's main business activity. Below are Stratege Consulting LLC transactions for the month of March 2019. . . . . . 3/1 Began with 200 cellphones @ $50 in its inventory 3/10 Purchased 100 cellphones @ $40 3/20 Purchased 150 cellphones @ $40 3/27 Purchased 250 cellphones @ $30 3/31 250 cellphone remained on hand Instructions: Using the Periodic Method of Inventory Cost Flow: 1. What is the Goods Available for Sales (CGAFS) in Units 2. What is the Goods Available for Sales (CGAFS) in Dollars 3. Ending Inventory in dollars for FIFO 4. Cost of Goods of Goods Sold (COGS) for FIFO 5. Ending Inventory in dollars for LIFO 6. Cost of Goods of Goods Sold (COGS) for LIFO

Answer 1

		Cost of Goods Available for sale
Date	Activity	Units	Unit Price	Amount
3/1	Beginning Inventory	200	$      50.00	$10,000.00
3/10	Purchase	100	$      40.00	$ 4,000.00
3/20	Purchase	150	$      40.00	$ 6,000.00
3/27	Purchase	250	$      30.00	$ 7,500.00
	Total	700		$27,500.00

1. Goods Available for sale = 700 units

2. Goods Available for sale (Dollars) = $27500

3. FIFO
Ending Inventory consists of goods purchased at last

		Ending Inventory
Date	Activity	Units	Unit Price	Amount
3/27	Purchase	250	$      30.00	$ 7,500.00

Ending Inventory = $7500

4. FIFO
Cost of Goods Sold = $27500 - $7500 = $20000

5. LIFO
Ending Inventory consists of Purchases made earliest

		Ending Inventory
Date	Activity	Units	Unit Price	Amount
3/1	Beginning Inventory	200	$      50.00	$10,000.00
3/10	Purchase	50	$      40.00	$ 2,000.00
	Total	250		$12,000.00

Ending Inventory = $12000

6. LIFO
Cost of Goods Sold = $27500 - $12000 = $15500