Assignment 4 L.Use the following to answer the question(s) below: Shown below is
ID: 2546236 • Letter: A
Question
Assignment 4 L.Use the following to answer the question(s) below: Shown below is the activity for one of the products of Random Creations: January 1 balance, 80 units @ $50 $4,000 Purchases January 18: 40 units@ S51 January 28: 40 units@ S52 Sales: January 12: 30 units January 22: 30 units January 31: 45 units Show your computation. 1) Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Random Creations uses LIFO and perpetual inventory system. 2) Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Random Creations uses LIFO and a periodic inventory system 3) Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Random Creations uses average cost and a periodic inventory system. 4) Required: Compute the January 31 ending inventory and cost of goods sold for January, assuming Random Creations uses average cost and a perpetual inventory system.Explanation / Answer
computation of closing stock & COGS as on 31st under LIFO and Perpetual inventory
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2) Computation of COGS & closing stck under LIFO & 'periodic inventory system -
3) Value of closing stock & COGS under Weighted avg. method & periodic inventory -
avg. price = (opening + purchase cost)/(opening + purchase) units
COGS = units sold * weighted avg. cost per unit -
4. computation of closing stock & COGS as on 31st under weighted avg. and Perpetual inventory -
II - Journal entries -
2) Year end balance sheet presentation -
Please comment in case of further clarification / wrong answer.
Date opening purchase Consumption Closing Value of closing stock under LIFO system COGS 1/1/2018 80 0 0 80 4000 1/12/2018 80 0 30 50 2500 1500 1/18/2018 50 40 0 90 4540 1/22/2018 90 0 30 60 3010 1530 1/28/2018 60 40 0 100 5090 1/31/2018 100 0 45 55 2750 2340 Total 80 80 105 55 2750 5370