Problem 6-2A (Part Lewel Subniisslon) t press Dietr tion markets CDe of the perf

ID: 2390467 • Letter: P

Question

Problem 6-2A (Part Lewel Subniisslon) t press Dietr tion markets CDe of the perf in 5 tst riehe At the beginning f Gotobe txpress ad Oct. 3 3,875?$8 0ct. 19 4.550@ 10 beginning entory 10t fris e's CDs with 5 unit cost of During October, press mode the fol ng purchases ofH6 e'scue Curin Octaba, 16,805 swe sald. Exaress uses a periodie invarty ayatem e ary sys ?(a) Your rowers orrest Determine the cost of qoods awalable for sale. Cost o goods aveilable for sale Attempts: 1 of S used (h1) Celculate weighted averap cot per unit. Round answer to 2 decinial places e.g. 2.25.) Attempts: 1 of 5 used (b2) Determine 1 the end ng nventory and z) tne cost of goods sod under e ? o he 5se med cost flow methods riro uro, Bnd 5 erege cost). Aoun answers to O decr la places, e g 250 Use ve?hteo aver ge un t cost roun ed to 2 decr arp aces for computations, The ending inventory The cost of goods sold s Attempts: O of S used AVE FOR LATE

Explanation / Answer

(b2) Ending Inventory & COGS :-

FIFO

LIFO

Average cost

Ending Inventory

(6200 * 11) + (155 * 10)

=69750

(3100 * 7) + (3255 * 8)

=47740

(6355 * 9.30)

=59101.5

COGS

(cost of goods available for sale – Ending Inventory)

(216225 – 69750)

=146475

(216225 – 47740)

=168485

(216225 – 59101.5)

=157123.5

Total units available for sale = opening stock + Purchase

= 3100 + 3875 + 5425 + 4650 + 6200 = 23250 units

Units Sold = 16895 units

Ending Inventory = 23250 – 16895 = 6355 units

FIFO :- Goods first purchase are first sold.

Hence Ending Inventory in this method contains goods purchased in last

LIFO :- Goods last purchase are first sold.

Hence Ending Inventory in this method contains goods purchased in first