Question

x nework 10-11 November - Avg an .. Fatima Co. incurred the following transactions during the month of December 2019. December 1: Beginning Inventory (400 units @ 10 per unit) December 8: Purchased 90 units @ 11 per unit December 12: Sold 430 units @ 20 per unit December 15 Purchased 100 units @ 9 per unit December 16 Purchased 50 units @ 9.50 per unit December 22: Sold 90 units @ 21 per unit December 25 Sold 60 units @ 21.50 per unit December 28: Sold 10 units @ 22.00 per unit December 30: Purchased 90 units @ 10.50 per unit December 31: Sold 60 units @ 22.50 per unit Required: You have to use Average and FIFO methods and calculate the following: Calculate cost of ending inventory on December 31st, 2019 Calculate cost of goods sold for the period ending on December 31, 2019 Calculate gross profit for the period ending on December 31, 2019.

Answer 1

FIFO METHOD Date Particulars Units Price Amount Units Price Amount Units Price Amount 01-Dec Opening Inventory 400.00 10.00 4000.00 08-Dec Purchases 90.00 11.00 990.00 Balance 400.00 10.00 4000.00 90.00 11.00 990.00 12-Dec Sales 430.00 20.00 8600.00 Balance 1 60.00 11.00 660.00 15-Dec Purchases 100.00 9.00 900.00 Balance 60.00 11.00 660.00 100.00 9.000 900.000 16-Dec Purchases 50.00 9.50 475.00 Balance 60.00 11.00 660.00 100.00 9.00 900.00 50.00 9.50 475.00 22-Dec Sales 90.00 21.00 1890.00 Balance TTT 70.00 9.00 630.00 50.00 9.50 475.00 25-Dec Sales 60.00 21.50 1290.00 Balance 10.00 9.00 50.00 9.50 475.00 28-Dec Sales 10.00 22.00 220.00 Balance 50.00 9.50 475.00 30-Dec Purchases 90.00 10.50 945.00 50.00 9.501 475.00 90.00 10.50 945.00 31-Dec Sales 60.00 22.50 1350.00 Closing Balance 80.00 10.50 840.00 10.00 9.00 90.00

Average Method Date Particulars Units Price Amount Units Price Amount Units Price Amount 01-Dec Opening Inventory 400.00 10.00 4000.00 08-Dec Purchases 90.00 11.00 990.00 Balance 490.00 10.18 4990.00 12-Dec Sales 430.00 20.00 8600.00 Balance 60.00 10.18 610.80 15-Dec Purchases 100.00 9.00 900.00 Balance 160.00 9.75 1560.00 16-Dec Purchases 50.00 9.50 475.00 Balance 210.00 9.69 2035.00 22-Dec Sales 90.00 21.00 1890.00 Balance 120.00 9.69 1162.80 25-Dec Sales 60.00|21.50 1290.00 Balance 60.00 9.69 581.40 28-Dec Sales 10.00 22.00 220.00 Balance 50.00 9.69 484.50 30-Dec Purchases 90.00 10.50 945.00 Balance 140.00 10.15 31-Dec Sales 60.00 22.50 1350.00 Closing Balance 80.00 10.50 840.00

2019 Opening Inventory Purchases Sales Date Particulars Units Price Amount Units Price Amount Units Price Amount 01-Dec Opening Inventory 400.00 10.00 4000.00 08-Dec Purchases 90.00 11.00 990.00 12-Dec Sales 430.00 20.00 8600.00 15-Dec Purchases 100.00 9.00 900.00 16-Dec purchases 50.00 9.50 475.00 22-Dec Sales 90.00 21.00 1890.00 25-Dec Sales 60.00 21.50 1290.00 28-Dec Sales 10.00 22.00 220.00 30-Dec Purchases 90.00 10.50 945.00 31-Dec Sales 60.00 22.50 1350.00 TOTAL Opening 4000.00 Purchases 3310.00 Sales 13350.00 COGS 6470.00 Gross Profit 6880.00