Question

Tigris Company is a manufacturing company that sells its products to wholesalers. In the beginning of April, Tigris has 4,000 units that cost an average of $12 to produce. On April 4, Tigris sold 1500 units at a price of $45 per unit. On April 7, Tigris produced 3,000 more units for an average cost of $15 per unit. Tigris then produced 1000 more units at a cost of $16 per unit. On April 12 Tigris sold 4,000 units at a price of $42 per unit. On April 18 Tigris produced 5,000 more units at a cost of $18 per unit. Tigris sold 1,500 more units at a price of $50 per unit on April 24. Finally on April 28, Tigris produced 2,000 more units at a cost of $20 per unit. Calculate the cost of Goods Available for sale, Cost of Goods Sold, Ending Inventory, and Gross Profit for: 1. LIFO Periodic 2. LIFO Perpetual 3. Weighted Average Perpetual (round calculations to at least 3 decimal places)

Answer 1

	LIFO Periodic	LIFO Perpetual	Weighted Average Perpetual
Cost of goods available for sale	239000	239000	239000
Cost of goods sold	130000	106000	99000
Ending inventory	109000	133000	140000
Gross profit	180500	204500	211500

Workings:

Gross profit = Sales revenue - Cost of goods sold

Sales revenue:

April 4 (1500 x $45)	67500
April 12 (4000 x $42)	168000
April 24 (1500 x $50)	75000
Total sales revenue	310500

LIFO Periodic
	Beginning Inventory + Production			Cost of Goods Sold			Balance in Inventory
Date	Units	Unit cost	Total $	Units	Unit cost	Total $	Units	Unit cost	Total $
April 1	4000	12	48000				4000	12	48000
7	3000	15	45000				3000	15	45000
	1000	16	16000				1000	16	16000
18	5000	18	90000	5000	18	90000
28	2000	20	40000	2000	20	40000
Total	15000		239000	7000		130000	8000		109000
LIFO Perpetual
	Production			Cost of Goods Sold			Balance in Inventory
Date	Units	Unit cost	Total $	Units	Unit cost	Total $	Units	Unit cost	Total $
April 1							4000	12	48000
4				1500	12	18000	2500	12	30000
7	3000	15	45000				2500	12	30000
							3000	15	45000
	1000	16	16000				2500	12	30000
							3000	15	45000
							1000	16	16000
12				1000	16	16000
				3000	15	45000	2500	12	30000
18	5000	18	90000				2500	12	30000
							5000	18	90000
24				1500	18	27000	2500	12	30000
							3500	18	63000
28	2000	20	40000				2500	12	30000
							3500	18	63000
							2000	20	40000
Total	11000		191000	7000		106000	8000		133000
Weighted Average Perpetual
	Production			Cost of Goods Sold			Balance in Inventory
Date	Units	Unit cost	Total $	Units	Unit cost	Total $	Units	Unit cost	Total $
April 1							4000	12	48000
4				1500	12	18000	2500	12	30000
7	3000	15	45000				5500	13.636	75000
	1000	16	16000				6500	14.000	91000
12				4000	14.000	56000	2500	14.000	35000
18	5000	18	90000				7500	16.667	125000
24				1500	16.667	25000	6000	16.667	100000
28	2000	20	40000				8000	17.500	140000
Total	11000		191000	7000		99000	8000		140000