The company reported the following inventory data for the year: Beginning invent
ID: 2448783 • Letter: T
Question
The company reported the following inventory data for the year:
Beginning inventory....300 units.. $17.50 cost per unit
Purchases:
March 23..........900 units @ 18.00 cost per unit
September 16........1,200 units @ 18.25 cost per unit
Units remaining at year end.......400 units
Assume that the sales occurred as follows:
January 16.............100 units sold
July 15...................600 units sold
November 1............1,300 units sold
Total.......................2,000 units sold
The company uses a perpetual inventory system.
Compute cost of goods sold assuming:
LIFO inventory valuation ?
average cost inventory?
Compute ending inventory assuming :
LIFO inventory valuation ?
average cost inventory valuation?
Explanation / Answer
LIFO Date Particulars Units Cost Amount COGS 1-Jan Op Bal 300.00 17.50 5,250.00 16-Jan Sales 100.00 17.50 1,750.00 100*17.50 Total 200.00 3,500.00 23-Mar Purchases 900.00 18.00 16,200.00 Total 1,100.00 19,700.00 16-Jul Sales 600.00 18.00 10,800.00 600*18 Total 500.00 8,900.00 16-Sep Purchases 1,200.00 18.25 21,900.00 Total 1,700.00 30,800.00 1-Nov Sales 1,300.00 23,700.00 1200*18.25 + 100*18 Total 400.00 7,100.00 COGS 36,250.00 Closing Stock 7,100.00 Weighted Average Date Particulars Units Cost Amount COGS 1-Jan Op Bal 300.00 17.50 5,250.00 16-Jan Sales 100.00 17.50 1,750.00 Total 200.00 17.50 3,500.00 23-Mar Purchases 900.00 18.00 16,200.00 Total 1,100.00 17.91 19,700.00 16-Jul Sales 600.00 17.91 10,745.45 Total 500.00 17.91 8,954.55 16-Sep Purchases 1,200.00 18.25 21,900.00 Total 1,700.00 18.15 30,854.55 1-Nov Sales 1,300.00 18.15 23,594.65 Total 400.00 18.15 7,259.89 COGS 36,090.11 Closing Stock 7,259.89