Question

Name: Class Time: The company tracks inventory on a FIFO basis GCS had 300 units in inventory. The 2012 BG Computer Supply (BGCS) has a December 31st fiscal year-end. The company tracks iny and reports inventory on a LIFO basis. As of December 31, 2012, BGCS had 300 units in in BGCS annual report had the following inventory disclosure: Inventory at FIFO $24,000 Less: LIFO Reserve $ 6,000 Inventory at LIFO $ 18,000 During 2013, BGCS had the following purchases: Purchases Table Units Value/Unit Total Purchase 1 - 2/1/13 350 $90.00 $31,500 Purchase 2 - 6/11/13 $90,000 Purchase 3 - 9/12/13 1,200 $105.00 $126,000 Purchase 4 - 12/14/13 450 $110.00 $49,500 A physical count on December 31, 2013 indicated that BGCS had 500 units in ending inventory. Based information, calculate the following amounts for fiscal year 2013: 900 $100.00 FIFO Amounts Fiscal Year 2013 Sales (in units): Goods Available for Sale (units): Goods Available for Sale ($): FIFO Ending Inventory ($): FIFO Cost of Goods Sold ($): LIFO Amounts Fiscal Year 2013 Sales (in units): Goods Available for Sale (units): Goods Available for Sale ($): LIFO Ending Inventory ($): LIFO Cost of Goods Sold ($): LIFO Reserve at 12/31/13: Inventory Profit at 12/31/13:_

any help with this is greatly appreciated

Answer 1

Answer -

As per given information,

Beginning inventory = 300 units

Inventory at FIFO = $24000

= $24000 / 300 units = $80 per unit

And

Inventory at LIFO = $18000

= $18000 / 300 units = $60 per unit

a. Answer -

FIFO Amounts

Fiscal Year 2013 Sales (in units)	2700
Goods Available for Sale (units)	3200
FIFO Ending Inventory ($)	$54750
Goods Available for Sale ($)	$321000
FIFO Cost of Goods Sold ($)	$266250

Calculations :

	Goods available for sale			Cost of goods sold			Ending inventory
	Quantity	Unit cost	Total	Quantity	Unit cost	Total	Quantity	Unit cost	Total
Beginning (12/31/12)	300	$80	$24000	300	$80	$24000
Purchase (2/1/13)	350	$90	$31500	350	$90	$31500
Purchase (6/11/13)	900	$100	$90000	900	$100	$90000
Purchase (9/12/13)	1200	$105	$126000	1150	$105	$120750	50	$105	$5250
Purchase (12/14/13)	450	$110	$49500				450	$110	$49500
Total	3200		$321000	2700		$266250	500		$54750

b. Answer -

LIFO Amounts

Fiscal Year 2013 Sales (in units)	2700
Goods Available for Sale (units)	3200
LIFO Ending Inventory ($)	$36000
Goods Available for Sale ($)	$315000
LIFO Cost of Goods Sold ($)	$279000

Calculations :

	Goods available for sale			Cost of goods sold			Ending inventory
	Quantity	Unit cost	Total	Quantity	Unit cost	Total	Quantity	Unit cost	Total
Beginning (12/31/12)	300	$60	$18000				300	$60	$18000
Purchase (2/1/13)	350	$90	$31500	150	$90	$13500	200	$90	$18000
Purchase (6/11/13)	900	$100	$90000	900	$100	$90000
Purchase (9/12/13)	1200	$105	$126000	1200	$105	$126000
Purchase (12/14/13)	450	$110	$49500	450	$110	$49500
Total	3200		$315000	2700		$279000	500		$36000

LIFO reserve at 12/31/13 :

= Inventory at FIFO - Inventory at LIFO

= $54750 - $36000

= $18750