Thank you
E6-14 Modified:
The units of an item available for sale during the year were as follow:
Jan. 1 Inventory 27 units at $120
Feb. 17 Purchase 54 units at $138
July 21 Purchase 63 units at $156
Nov. 23 Purchase 36 units at $165
Assume the perpetual inventory method an April 12th sale of 60 units and a September 10th sale of 70 units.
How much is cost of goods sold for the year under FIFO LIFO and Moving Average?
What is the cost of ending inventory on December 31st under FIFO LIFO and Moving Average? (Show supporting calculations.)
They are 50 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by (a) the first in first-out method. (b) the last in first out method and (c) the average cost method.
(A)
FIFO
Purchases
Sales
Balance in Inventory
Date
Units
$/unit
Total $
Units
$/unit
Total $
Units
$/unit
Total $
1/1
27
120
3240
2/17
54
138
7452
27
120
3240
54
138
7452
4/12
27
120
3240
7/21
63
156
9828
9/10
11/23
36
165
5940
CGS
$
End Inv
$
(B)
LIFO
Purchases
Sales
Balance in Inventory
Date
Units
$/unit
Total $
Units
$/unit
Total $
Units
$/unit
Total $
1/1
27
120
3240
2/17
54
138
7452
27
120
3240
54
138
7452
4/12
27
120
3240
7/21
63
156
9828
9/10
11/23
36
165
5940
CGS
$
End Inv
$
(C)
Moving
Ave
Purchases
Sales
Balance in Inventory
Date
Units
$/unit
Total $
Units
$/unit
Total $
Units
$/unit
Total $
1/1
27
120
3240
2/17
54
138
7452
27
120
3240
54
138
7452
4/12
27
120
3240
7/21
63
156
9828
9/10
11/23
36
165
5940
CGS
$
End Inv
$
Calculation for the last part prices.
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