Perpetual Inventory System; | ||||
1 | Average cost method | |||
Date | Transactions | Quantity | Unit cost | Amount ($ ) |
1-Jun | Beginning inventory | 35 | 215.00 | 7,525.00 |
5-Jun | Purchase | 20 | 217.00 | 4,340.00 |
7-Jun | Purchase | 35 | 220.00 | 7,700.00 |
8-Jun | Purchase | 25 | 210.00 | 5,250.00 |
10-Jun | Cost of goods sold | -80 | 215.78 | (17,262.61) |
17-Jun | Purchase | 35 | 208.00 | 7,280.00 |
20-Jun | Cost of goods sold | -55 | 211.89 | (11,654.02) |
25-Jun | Purchase | 30 | 222.00 | 6,660.00 |
30-Jun | Ending Inventory | 45 | 9,838.37 | |
Total sales ( 135 units x $ 350 ) | 47,250.00 | |||
Less: Total Cost of goods sold | (28,916.63) | |||
Gross Profit | 18,333.37 | |||
2 | LIFO method | |||
Date | Transactions | Quantity | Unit cost | Amount ($ ) |
1-Jun | Beginning inventory | 35 | 215.00 | 7,525.00 |
5-Jun | Purchase | 20 | 217.00 | 4,340.00 |
7-Jun | Purchase | 35 | 220.00 | 7,700.00 |
8-Jun | Purchase | 25 | 210.00 | 5,250.00 |
10-Jun | Cost of goods sold | -25 | 210.00 | (5,250.00) |
" | -35 | 220.00 | (7,700.00) | |
-20 | 217.00 | (4,340.00) | ||
17-Jun | Purchase | 35 | 208.00 | 7,280.00 |
20-Jun | Cost of goods sold | -35 | 208.00 | (7,280.00) |
" | -20 | 215.00 | (4,300.00) | |
25-Jun | Purchase | 30 | 222.00 | 6,660.00 |
30-Jun | Ending Inventory | 45 | 9,885.00 | |
Total sales ( 135 units x $ 350 ) | 47,250.00 | |||
Less: Total Cost of goods sold | (28,870.00) | |||
Gross Profit | 18,380.00 | |||
3 | FIFO method | |||
Date | Transactions | Quantity | Unit cost | Amount ($ ) |
1-Jun | Beginning inventory | 35 | 215.00 | 7,525.00 |
5-Jun | Purchase | 20 | 217.00 | 4,340.00 |
7-Jun | Purchase | 35 | 220.00 | 7,700.00 |
8-Jun | Purchase | 25 | 210.00 | 5,250.00 |
10-Jun | Cost of goods sold | -35 | 215.00 | (7,525.00) |
" | -20 | 217.00 | (4,340.00) | |
" | -25 | 220.00 | (5,500.00) | |
17-Jun | Purchase | 35 | 208.00 | 7,280.00 |
20-Jun | Cost of goods sold | -10 | 220.00 | (2,200.00) |
" | -25 | 210.00 | (5,250.00) | |
" | -20 | 208.00 | (4,160.00) | |
25-Jun | Purchase | 30 | 222.00 | 6,660.00 |
30-Jun | Ending Inventory | 45 | 9,780.00 | |
Total sales ( 135 units x $ 350 ) | 47,250.00 | |||
Less: Total Cost of goods sold | (28,975.00) | |||
Gross Profit | 18,275.00 | |||
Periodic Inventory System; | ||||
1 | Average cost method | |||
Date | Transactions | Quantity | Unit cost | Amount ($ ) |
1-Jun | Beginning inventory | 35 | 215.00 | 7,525.00 |
5-Jun | Purchase | 20 | 217.00 | 4,340.00 |
7-Jun | Purchase | 35 | 220.00 | 7,700.00 |
8-Jun | Purchase | 25 | 210.00 | 5,250.00 |
17-Jun | Purchase | 35 | 208.00 | 7,280.00 |
25-Jun | Purchase | 30 | 222.00 | 6,660.00 |
TOTAL | 180 | 38,755.00 | ||
Average cost per unit ( $ 38,755 / 180 units) | 215.31 | |||
30-Jun | Ending Inventory ( 45 units x $ 215.31 ) | 9,688.75 | ||
Total sales ( 135 units x $ 350 ) | 47,250.00 | |||
Less: Total Cost of goods sold ( 135 units x $ 215.31 ) | (29,066.25) | |||
Gross Profit | 18,183.75 | |||
2) | LIFO | Units | Rate | Amount $ |
Total sales ( 135 units x $ 350 ) | 135 | 350.00 | 47,250.00 | |
Cost of goods sold; | ||||
30.00 | 222.00 | 6660 | ||
35.00 | 208.00 | 7280 | ||
25 | 210.00 | 5250 | ||
35 | 220.00 | 7700 | ||
10 | 217.00 | 2170 | ||
Total cost of goods sold | 135.00 | 29060 | ||
Gross profit | 18,190.00 | |||
Ending Inventory | 45 | 9,695.00 | ||
3 | FIFO | Units | Rate | Amount $ |
Total sales | 135 | 350.00 | 47,250.00 | |
Cost of goods sold; | ||||
35.00 | 215.00 | 7525 | ||
20.00 | 217.00 | 4340 | ||
35.00 | 220.00 | 7700 | ||
25.00 | 210.00 | 5250 | ||
20.00 | 208.00 | 4160 | ||
Total cost of goods sold | 135.00 | 28975 | ||
Gross profit | 18,275.00 | |||
Ending Inventory | 45 | 9,780.00 |
Average | LIFO | FIFO | ||||||||||||
Perpetual | Periodic | Difference | Perpetual | Periodic | Difference | Perpetual | Periodic | Difference | ||||||
Cost of goods sold | 28,916.63 | 29,066.25 | 149.62 | 28,870.00 | 29060 | 190.00 | 28,975.00 | 28975 | - | |||||
Gross Profit | 18,333.37 | 18,183.75 | (149.62) | 18,380.00 | 18,190.00 | (190.00) | 18,275.00 | 18,275.00 | - | |||||
Ending Inventory | 9,838.37 | 9,688.75 | (149.62) | 9,885.00 | 9,695.00 | (190.00) | 9,780.00 | 9,780.00 | - | |||||
Note: 1. Perpetual inventory system is method of accounting for inventory in which all sales , purchases and cost of goods sold are recorded at immediate effect through out each point of sale. | ||||||||||||||
2. In the Periodic Inventory System, all the above updates are made on a periodic basis.Cost of goods sold are recorded at the end of the period. |
Part B-25 marks- Inventory management Bike World recently opened several stores in New South Wales. The...
Bike World recently opened several stores in New South Wales. The owner is considering whether a perpetual or periodic inventory system should be used. The company also has an inventory of a bike model with details below: Requirements: Explain the essential differences in accounting treatments between perpetual and periodic inventory systems. You have to use journal entries to demonstrate each difference. With the nature of Bike World’s business, which system would you suggest to the owner? Why? Using a spreadsheet,...
Question 3 (20 marks) Brilliant Company uses the periodic inventory system. The company's beginning inventory and later purchases of inventory during June 2020 were as below: Jun 01: Beginning inventory, 55 units @ $35 per unit. Jun 17: Inventory purchased, 80 units @ $28 per unit. Jun 25: Inventory purchased, 65 units @ $32 per unit. Brilliant company sold 120 units during the month of June 2020. Required: a. Calculate the cost of goods sold and ending inventory for June...
Question 1 (20 marks) Brilliant Company uses the periodic inventory system. The company's beginning inventory and later purchases of inventory during June 2020 were as below: Jun 01: Beginning inventory, 40 units @ $24 per unit. Jun 17: Inventory purchased, 85 units @ $30 per unit. Jun 25: inventory purchased, 60 units @ $35 per unit. Brilliant company sold 120 units during the month of June 2020. Required: a Calculate the cost of goods sold and ending inventory for June...
Question 1 (20 marks) Brilliant Company uses the periodic inventory system. The company’s beginning inventory and later purchases of inventory during June 2020 were as below: Jun 01: Beginning inventory, 45 units @ $25 per unit. Jun 17: Inventory purchased, 80 units @ $28 per unit. Jun 25: Inventory purchased, 65 units @ $32 per unit. Brilliant company sold 100 units during the month of June 2020. Required: a.Calculate the cost of goods sold and ending inventory for June 2020...
Question 1 (20 marks) Brilliant Company uses the periodic inventory system. The company’s beginning inventory and later purchases of inventory during June 2020 were as below: Jun 01: Beginning inventory, 30 units @ $22 per unit. Jun 17: Inventory purchased, 95 units @ $25 per unit. Jun 25: Inventory purchased, 50 units @ $28 per unit. Brilliant company sold 110 units during the month of June 2020. Required: Calculate the cost of goods sold and ending inventory for June 2020...
Question 1 (20 marks) Brilliant Company uses the periodic inventory system. The company’s beginning inventory and later purchases of inventory during June 2020 were as below: Jun 01: Beginning inventory, 45 units @ $25 per unit. Jun 17: Inventory purchased, 80 units @ $28 per unit. Jun 25: Inventory purchased, 65 units @ $32 per unit. Brilliant company sold 100 units during the month of June 2020. Required: Calculate the cost of goods sold and ending inventory for June 2020...
Question 1 (20 marks) Brilliant Company uses the periodic inventory system. The company's beginning inventory and later purchases of irrventory during June 2020 were as below. Jun 01: Beginning inventory. 45 units @ $25 per unit Jun 17. Inventory purchased, 80 units@ $28 per unit. Jun 25. Inventory purchased, 65 units @ $32 per unit. Brilliant company sold 100 units during the month of June 2020. Required: a Calculate the cost of goods sold and ending inventory for June 2020...
Question 1 (20 marks) Brilliant Company uses the periodic inventory system. The company's beginning inventory and later purchases of inventory during June 2020 were as below: Jun 01: Beginning inventory, 40 units @ $26 per unit. Jun 17: Inventory purchased, 85 units @ $32 per unit. Jun 25: Inventory purchased, 60 units @ $34 per unit. Brilliant company sold 110 units during the month of June 2020. Required: a. Calculate the cost of goods sold and ending inventory for June...
plz answr asap Question 1 (20 marks) Brilliant Company uses the periodic inventory system. The company's beginning inventory and later purchases of inventory during June 2020 were as below. Jun 01: Beginning inventory. 45 units @ $25 per unit. Jun 17: Inventory purchased, 80 units @ $28 per unit Jun 25: Inventory purchased, 65 units @ $32 per unit Brilliant company sold 100 units during the month of June 2020. Required: a. Calculate the cost of goods sold and ending...
Solve Part a and b please The inventory records of Kuffel Co. reflected the following information for the year ended December 31, 2019: Unit Cost Total Cost $ 4,500 2,450 $ 30 35 Date 1/1 1/24 2/22 3/7 4/10 6/11 9/28 12/4 Transaction Beginning inventory Purchase Sale Purchase Purchase Sale Purchase Sale Number of Units 150 70 (100) 90 140 (100) 50 (100) 36 37 3,240 5,180 39 1,950 Required: a. Assume that Kuffel Co. uses a periodic inventory system....