1.
given | ||||
PARTICULARS | UNITS | AMOUNT PER UNIT | COST | |
Add | OPENING STOCK | 660 | 60 | 39600 |
Add | PURCHASE | 330 | 57 | 18810 |
Add | PURCHASE | 110 | 45 | 4950 |
Less | SALES | 715 | 70 | 50050 |
Add | PURCHASE | 160 | 65 | 10400 |
Add | PURCHASE | 570 | 61 | 34770 |
Less | SALES | 730 | 70 | 51100 |
balance | 385 | |||
cost of goods available for sale | ||||
OPENING STOCK | 39,600.00 | |||
Add | cost of goods purchased | 68,930.00 | ||
cost of goods available for sale | 1,08,530.00 | |||
no of units avaible for sale | ||||
opening stock | 660.00 | |||
Add | no of units purchased | 1,170.00 | ||
no of units avaible for sale | 1,830.00 |
2.
Calculation of closing inventory | no of units | ||
opening stock | 660 | ||
Add | purchase | 1170 | |
Less | sales | 1445 | |
closing stock | 385 |
3.
FIFO method | ||||
particulars | no of units | rate per unit | Amount(in $) | |
Add | OPENING STOCK | 660 | 60 | 39,600.00 |
Add | PURCHASE | 330 | 57 | 18,810.00 |
Add | PURCHASE | 110 | 45 | 4,950.00 |
Less | SALES | 715 | 70 | 50,050.00 |
balance | 275 | 57 | 15,675.00 | |
110 | 45 | 4,950.00 | ||
Add | PURCHASE | 160 | 65 | 10,400.00 |
Add | PURCHASE | 570 | 61 | 34,770.00 |
Less | SALES | 730 | 70 | 51,100.00 |
balance | 385 | 61 | 23,485.00 | |
(cost assigned to closing inventory) | ||||
Note: FIFO method means first in first out which means goods bought in first | ||||
that is opening stock should be cleared first and then as the goods bought should be sold therefore | ||||
closing inventory will be valued at last good purchased | ||||
LIFO method | ||||
particulars | no of units | rate per unit | Amount(in $) | |
Add | OPENING STOCK | 660 | 60 | 39,600.00 |
Add | PURCHASE | 330 | 57 | 18,810.00 |
Add | PURCHASE | 110 | 45 | 4,950.00 |
Less | SALES | 715 | 70 | 50,050.00 |
balance | 385 | 60 | 23,100.00 | |
Add | PURCHASE | 160 | 65 | 10,400.00 |
Add | PURCHASE | 570 | 61 | 34,770.00 |
Less | SALES | 730 | 70 | 51,100.00 |
balance | 385 | 60 | 23,100.00 | |
(cost assigned to closing inventory) | ||||
Note: LIFO method means last inventory bought in should be sold out first and | ||||
therefore balance of closing inventory will be based on price of opening stock |
weighted average method | ||||
particulars | no of units | rate per unit | Amount(in $) | |
Add | OPENING STOCK | 660 | 60 | 39,600.00 |
Add | PURCHASE | 330 | 57 | 18,810.00 |
Add | PURCHASE | 110 | 45 | 4,950.00 |
Less | SALES | 715 | 70 | 50,050.00 |
Add | PURCHASE | 160 | 65 | 10,400.00 |
Add | PURCHASE | 570 | 61 | 34,770.00 |
Less | SALES | 730 | 70 | 51,100.00 |
balance | 385 | 59.31 | 22,834.35 | |
(cost assigned to closing inventory) | ||||
calculation of weighted cost | ||||
no of units | cost | weighted average | ||
OPENING STOCK | 660 | 39600 | ||
PURCHASE | 330 | 18810 | ||
PURCHASE | 110 | 4950 | ||
PURCHASE | 160 | 10400 | ||
PURCHASE | 570 | 34770 | ||
total | 1830 | 108530 | 59.30601 | (108530/1830) |
Note: under weighted average no of units purchased will be divided | ||||
by total amount of goods purchased |
specific indentification | ||||
particulars | no of units | rate per unit | Amount(in $) | |
Add | OPENING STOCK | 660 | 60 | 39,600.00 |
Add | PURCHASE | 330 | 57 | 18,810.00 |
Add | PURCHASE | 110 | 45 | 4,950.00 |
Less | SALES | 715 | 70 | 50,050.00 |
Add | PURCHASE | 160 | 65 | 10,400.00 |
Add | PURCHASE | 570 | 61 | 34,770.00 |
Less | SALES | 730 | 70 | 51,100.00 |
balance as follows | 385 | |||
balance from sep 5 | 235 | 61 | 14,335.00 | |
balance from feb 10 | 100 | 57 | 5,700.00 | |
balance from aug 21 | 50 | 65 | 3,250.00 | |
total | 385 | 183 | 23,285.00 | |
therefore balance of closing inventory is $23,285 | ||||
ending inventory | |
FIFO | 23,485.00 |
LIFO(amt in $) | 23,100.00 |
Weighted average(amt in $) | 22,834.35 |
Specific identification(amt in $) | 23,285.00 |
4.
FIFO | LIFO(amt in $) | Weighted average(amt in $) | Specific identification(amt in $) | |
Sales | 1,01,150.00 | 1,01,150.00 | 1,01,150.00 | 1,01,150.00 |
Less: cost of goods sold | 85,045.00 | 85,430.00 | 85,695.65 | 85,245.00 |
Gross profit | 16,105.00 | 15,720.00 | 15,454.35 | 15,905.00 |
cost of good sold is opening stock plus purchase minus closing stock | ||||
Chapter 05 Homeworki Saved 18 Montoure Company uses a perpetual inventory system. It entered into the...
Problem 5-4AA Perpetual: Alternative cost flows LO P3 Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Units Sold at Retail Units Acquired at Cost 660 units @ $60 per unit 330 units @ $57 per unit 110 units @ $45 per unit Activities Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 715 units @ $70 per...
Montoure Company uses a perpetual Inventory system. It entered into the following calendar-year purchases and sales transactions Units sold at Retail Unite Aequired at Cost 680 units 540 per unit 320 units @ $35 per unit 100 units $23 per unit Date Activities Jan. Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 720 unitse $75 per unit 130 units 490 units $45 per unit $41 per unit...
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Montoure Company uses a perpetual inventory system. It entered into the following calendar year purchases and sales transactions Units Acquired at Cost Units Sold at Retail 660 units @ $35 per unit 330 units@ $32 per unit 110 units @ $20 per unit Date Activities Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 760 units @ $75 per unit 180 units @ $40 per unit...
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Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 600 units $40 per unit Feb. 10 Purchase 400 units@ $37 per unit Mar. 13 Purchase 190 units@ $15 per unit Mar. 15 Sales 805 units@ $70 per unit Aug. 21 Purchase 190 units @ $45 per unit Sept. 5 Purchase 550 units @ $43 per unit Sept. 10...
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