ABC Co. hold 100 units of beginning inventory that it purchased at $10 per unit.
ID: 2525097 • Letter: A
Question
ABC Co. hold 100 units of beginning inventory that it purchased at $10 per unit. On January 1 ABC purchased 120 units at $11 per unit. On March 4 ABC purchased 60 units at $11.50. On April 27th, ABC had their first sale of 100 units at $20 each. To restock inventory ABC purchased 70 units at $12 on May 8th. A second sale occurred on June 24th, of 100 units at $22. Their last purchase was on July 9th of 150 units for $14 each. Calculate COGS, and Ending Inventory under FIFO and LIFO assuming the use of: (1) perpetual inventory system, and (2) periodic inventory systems.
nventor unit. On January 1 ABC purchased 120 units at $11 per unit. On March 4 ABC purchased 60 units at $11.50. On April 27th, ABC had their first sale of 100 units at $20 each. To restock inventory ABC purchased 70 units at $12 on May 8th. A second sale occurred on June 24th, of 100 units at $22. Their last purchase was on July 9th of 150 units for $14 each. Calculate COGS, and Ending Inventory under FIFO and LIFO assuming the use of: (1) perpetual inventory system, and (2) periodic inventory systemsExplanation / Answer
Ending inventory Perpetual inventory COGS Quantity Balance FIFO 2,100 200 3,850 LIFO 2,300 200 3,650 Periodic inventory FIFO 2,100 200 3,850 LIFO 2,700 200 3,250 Workings : Perpetual inventory FIFO cost of goods sold Ending inventory Date of unit Average cost per unit Cost of Average goods available for sale of unit Average cost per unit cost of goods sold of unit Average cost per unit Ending inventory Beginning inventory 100 10 1000 100 10 1000 Jan-01 Purchase 120 11 1320 120 11 1320 Mar-04 Purchase 60 11.5 690 60 11.5 690 Balance 280 3010 Apr-27 Sales 100 10 1000 120 11 1320 60 11.5 690 Balance 180 2010 May-08 Purchase 70 12 840 120 11 1320 60 11.5 690 70 12 840 Balance 250 2850 Jun-24 Sales 100 11 1100 20 11 220 60 11.5 690 70 12 840 Balance 150 1750 Jul-09 Purchase 150 14 2100 20 11 220 60 11.5 690 70 12 840 150 14 2100 Balance/total 200 2100 300 3850 LIFO cost of goods sold Ending inventory Date of unit Average cost per unit Cost of Average goods available for sale of unit Average cost per unit cost of goods sold of unit Average cost per unit Ending inventory Beginning inventory 100 10 1000 100 10 1000 Jan-01 Purchase 120 11 1320 120 11 1320 Mar-04 Purchase 60 11.5 690 60 11.5 690 Balance 280 3010 Apr-27 Sales 60 11.5 690 40 11 440 100 10 1000 80 11 880 Balance 180 1880 May-08 Purchase 70 12 840 100 10 1000 80 11 880 70 12 840 Balance 250 2720 Jun-24 Sales 70 12 840 30 11 330 100 10 1000 50 11 550 Balance 150 1550 Jul-09 Purchase 150 14 2100 100 10 1000 50 11 550 150 14 2100 Balance/total 200 2300 300 3650 Periodic inventory FIFO cost of goods sold Ending inventory Date of unit Average cost per unit Cost of Average goods available for sale of unit Average cost per unit cost of goods sold of unit Average cost per unit Ending inventory Beginning 100 10 1000 100 10 1000 Jan-01 Purchase 120 11 1320 100 11 1100 20 11 220 Mar-04 Purchase 60 11.5 690 60 11.5 690 May-08 Purchase 70 12 840 70 12 840 Jul-09 Purchase 150 14 2100 150 14 2100 Balance 300 3850 200 2100 LIFO cost of goods sold Ending inventory Date of unit Average cost per unit Cost of Average goods available for sale of unit Average cost per unit cost of goods sold of unit Average cost per unit Ending inventory Beginning 100 10 1000 100 10 1000 Jan-01 Purchase 120 11 1320 120 11 1320 Mar-04 Purchase 60 11.5 690 60 11.5 690 May-08 Purchase 70 12 840 50 12 600 20 12 240 Jul-09 Purchase 150 14 2100 150 14 2100 Balance 300 3250 200 2700