Question

gagenow nment/takeAssignmentMaindo?invoker-assignments&takeAssign or assignme eBock Calculator Spedfic Identification, FIFO, LIFO, and Weighted Awerage Swing Company's beginning inventory and purchases during the fiscal year ended September 30, 2 Units Unit Price Total Cost October 18 November 25 January 12, 20-2 March 17 June 2 August 21 September 27 October 1, 20-1 Beginning inventory 400$20.00$8,000 500 20.50 10,250 200 21.50 4,300 300 23.00 6,900 900 24.50 22,050 800 25.00 20,000 200 26.00 5,200 700 27.00 18,900 $95,600 1st purchase 2nd purchase 3rd purchase 4th purchase 5th purchase 6th purchase 7th purchase 4,000 Use the following information for the specific identification method There are 1,300 units of inventory on hand on September 30, 20-2. Of these 1,300 units: 100 are from October 18, 20-1 200 are from January 12, 20-2 100 are from March 17 400 are from June 2 200 are from August 21 300 are from September 27 1st purchase 3rd purchase 4th purchase Sth purchase 6th purchase 7th purchase Required Calculate the total amount to be assigned to cost of goods sold for the fiscall year ended September 30, 20-2, and ending invento method, round the average unit cost to two decimal places. Round all final answers to the nearest doilar Cost of Goods Sold Cost of Ending Inventory 95,600 x 1. FIFO 2. LIFO 3. Weighted-average 4. Specific identification Check My Work

Answer 1

Ans: Required Answer is

Particulars	COGS	Closing Inventory
LIFO method	$68,450	$27150
FIFO method	$61,500	$34100
Weighted Average method	$64,530	$31,070
Specific Identification Method	$63,200	$32400

Working Note

Closing Stock in Specific Identification

Date of purchase of inventory	Particulars	Unit	Rate per unit ($)	Amount ($)	Unit in Closing stock	Value of Closing Stock ($)
1.Oct.20-1	Beginning Inventory	400	20	8000		0
18.Oct.20-1	1st purchase	500	20.5	10250	100	2050
15.Nov.20-1	2nd purchase	200	21.5	4300		0
12.Jan.20-2	3rd purchase	300	23	6900	200	4600
17.Mar.20-2	4th purchase	900	24.5	22050	100	2450
2.Jun.20-2	5th purchase	800	25	20000	400	10000
21.Aug.20-2	6th purchase	200	26	5200	200	5200
27.Sep.20-2	7th purchase	700	27	18900	300	8100
		4000		95600	1300	32400
Cost of goods sold in Specific Identification method	95,600- 32400
	$63,200

Value of stock in Closing Stock in LIFO Method
Date of purchase of inventory	Particulars	Unit in closing stock	Rate per unit ($)	Amount ($)
1.Oct.20-1	Beginning Inventory	400	20	8000
18.Oct.20-1	1st purchase	500	20.5	10250
15.Nov.20-1	2nd purchase	200	21.5	4300
12.Jan.20-2	3rd purchase	200	23	4600
		1300		27150
Cost of goods sold in LIFO Method		(95,600- 27150)
		$68,450

Value of stock in Closing Stock in FIFO Method
Date of purchase of inventory	Particulars	Unit in closing stock	Rate per unit ($)	Amount ($)
27.Sep.20-2	7th purchase	700	27	18900
21.Aug.20-2	6th purchase	200	26	5200
2.Jun.20-2	5th purchase	400	25	10000
				0
		1300		34100
Cost of goods sold in FIFO Method	(95,600-34,100)
	$61,500

Value of stock in Closing Stock in Weighted Average Method	Closing Stock in unit ( total value of stock purchased/ Number of unit purchased))
	1,300*(95,600/4000)
	$31,070
Cost of goods sold in Weighted average Method	95,600-31,070
	$64,530

Ans : Greatest common factor of 64 & 88.

Prime factor of 64 = 2*2*2*2*2*2

Prime factor of 88 = 2*2*2*11

So greatest common factor in 64 & 88 is 8 (2*2*2)