Question

26. A company's inventory records indicate the following data for the month of April. April 1 April 5 April 9 April 14 April 20 April 30 Beginning Purchase Sale Purchase Sale Purchase 100 units at $ 10 each 100 units at $ 11 each 150 units at $ 10 each 50 units at $ 12 each 60 units at $ 10 each 100 units at $ 13 each 1. If the company uses the first-in, first-out (FIFO) method and the perpetual inventory system, what is the amount of cost of goods sold for April? 2. Calculate the cost of goods sold assuming that the company uses LIFO. 3. Calculate the cost of goods sold using the weighted average method.

Answer 1

Requirement 1 FIFO Method Perpetual inventory Record Purchases Cost of goods sold unit cost Total cost Quantity unit cost Total cost Date Quantity Apr-01 Inventory Quantity unit cost total cost 100 $ 10.00 $ 1,000.00 Apr-05 100 $ 11.00 $ 1,100.00 100 $ 10.00 100 $ 11.00 $ 1,000.00 $ 1,100.00 Apr-09 50 $ 11.00 $ 550.00 100 $ 10.00 $ 1,000.00 50 $ 11.00 $ 550.00 14-Apr 50 $ 12.00 $ 600.00 50 $ 11.00 50 S 12.00 $ $ 550.00 600.00 20-Apr 40 $ 12.00 $ 480.00 50 $ 11.00 10 $ 12.00 $ $ 550.00 120.00 30-Apr 100 $ 13.00 $ 1,300.00 40 $ 12.00 $ 480.00 100 $ 13.00 $ 1,300.00 $ 2,220.00

Requirement 2 LIFO Method Perpetual inventory Record Purchases Cost of goods sold unit cost Total cost Quantity unit cost Total cost Date Quantity Apr-01 Inventory Quantity unit cost total cost 100 $ 10.00 $ 1,000.00 Apr-05 100 $ 11.00 $ 1,100.00 100 $ 10.00 100 $ 11.00 $ 1,000.00 $ 1,100.00 Apr-09 50 $ 10.00 $ 500.00 100 $ 11.00 $ 50 $ 10.00 $ 1,100.00 500.00 14-Apr 50 $ 12.00 $ 600.00 50 $ 10.00 $ 50 $ 12.00 $ 500.00 600.00 20-Apr $ 50 $ 12.00 10 S 10.00 400.00 $ $ 40 S 10. 40 $ 10.00 600.00 100.00 30-Apr 100 $ 13.00 $ 1,300.00 40 $ 10.00 $ 400.00 100 $ 13.00 $ 1,300.00 $ 2,300.00

Requirement 3 Weighted Average Method Perpetual inventory Record Purchases Cost of goods sold unit cost Total cost Quantity unit cost Total cost Date Quantity Apr-01 Inventory Quantity unit cost total cost 100 $ 10.00 $ 1,000.00 Apr-05 100 $ 11.00 $ 1,100.00 100 $ 10.00 $ 1,000.00 100 $ 11.00 $ 1,100.00 200 S 10.50 $ 2,100.00 Apr-09 150 S 10.50 $ 1,575.00 50 S 10.50 $ 525.00 14-Apr 50 $ 12.00 $ 600.00 50 S 10.50 50 $ 12.00 100 S 11.25 $ 525.00 $ 600.00 $ 1,125.00 20-Apr 60 S 11.25 $ 675.00 40 S 11.25 $ 450.00 30-Apr 100 $ 13.00 $ 1,300.00 40 $ 11.25 $ 450.00 100 $ 13.00 $ 1,300.00 $ 2,250.00