Question

Use scrap paper to work out the problem. Write the correct amount only for each item. The following information is from Naldo Party Supplies for the month of February Chopter 6 Exercise Unit Cost/Sale Units Description Date Price $19 45 Beginning Inventory 1-Feb $21 200 Purchase 9-Feb $42 11-Feb Sale 108 $24 17-Feb Purchase 85 $47 22-Feb Sale 145 25-Feb $27 Purchase 100 28-Feb 123 $53 Sale Instructions: Calculate the following under the different Cost Flow Methods using a perpetual inventory system. FIFO Ending Inventory: Cost of Goods Sold: Gross Profit: GPR: LIFO Ending Inventory Cost of Goods Sold: Gross Profit: GPR: Average-Cost Ending Inventory: Cost of Goods Sold: Gross Profit: GPR:

Answer 1

FIFO - PERPETUAL METHOD
		PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
Feb, 01	Beginning inventory							45	$         19.00	$855
Feb, 09	Purhcases	200	$             21.00	$4,200				45	$         19.00	$855
								200	$         21.00	$4,200
Feb, 11	Sales				45	$             19.00	$855
					63	$             21.00	$1,323	137	$         21.00	$2,877
Feb, 17	Purchases	85	$             24.00	$2,040				137	$         21.00	$2,877
								85	$         24.00	$2,040
Feb, 22	Sales				137	$             21.00	$2,877
					8	$             24.00	$192	77	$         24.00	$1,848
Feb, 25	Purchases	100	$             27.00	$2,700				77	$         24.00	$1,848
								100	$         27.00	$2,700
Feb, 28	Sales				77	$             24.00	$1,848
					46	$             27.00	$1,242	54	$         27.00	$1,458
		385		$8,940	376		$8,337	54		$1,458
LIFO - PERPETUAL METHOD
		PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
Feb, 01	Beginning inventory							45	$         19.00	$855
Feb, 09	Purhcases	200	$             21.00	$4,200				45	$         19.00	$855
								200	$         21.00	$4,200
Feb, 11	Sales				108	$             21.00	$2,268	45	$         19.00	$855
								92	$         21.00	$1,932
Feb, 17	Purchases	85	$             24.00	$2,040				45	$         19.00	$855
								92	$         21.00	$1,932
								85	$         24.00	$2,040
					85	$             24.00	$2,040
Feb, 22	Sales				60	$             21.00	$1,260	45	$         19.00	$855
								32	$         21.00	$672
Feb, 25	Purchases	100	$             27.00	$2,700				45	$         19.00	$855
								32	$         21.00	$672
								100	$         27.00	$2,700
Feb, 28	Sales				100	$             27.00	$2,700
					23	$             21.00	$483	45	$         19.00	$855
								9	$         21.00	$189
		385		$8,940	376		$8,751	54		$1,044
Avergae Cost Method
		PURHASES			COST OF GOODS SOLD			ENDING INVENTORY
Date	Particulars	Units	Rate	Total	Units	Rate	Total	Units	Rate	Total
Feb, 01	Beginning inventory							45	$         19.00	$855
Feb, 09	Purhcases	200	$             21.00	$4,200				245	$         20.63	$5,055
Feb, 11	Sales				108	$             20.63	$2,228	137	$         20.63	$2,827
Feb, 17	Purchases	85	$             24.00	$2,040				222	$         21.92	$4,867
Feb, 22	Sales				145	$             21.92	$3,179	77	$         21.92	$1,688
Feb, 25	Purchases	100	$             27.00	$2,700				177	$         24.79	$4,388
Feb, 28	Sales				123	$             24.79	$3,049	54	$         24.79	$1,339
		385		$8,940	376		$8,456	54		$1,339
ANSWERS:
		FIFO	LIFO	Average
	Ending inventory	$1,458	$1,044	$1,339
	Cost oF Good Sold	$8,337	$8,751	$8,456
	Gross Profit =
	Sales (108X42)+(145*47)+(123*53)	17870	17870	17870
	LEss: Cost of Goods sold	$8,337	$8,751	$8,456
	Gross Profit =	$9,533	$9,119	$9,414
	GPR	53%	51%	53%