Question

Joe's Products Co. had the following purchase transaction during the first quarter of its fiscal year: keer Date Transaction Jan. 1 Jan. 15 Beg. Inv. Purchase Number Per of Units Unit $15 100 Feb. 15 Purchase 120 March 15 Purhcase Joe's Products sold 170 units at $30/unit during the quarter. Of the untis sold, 20 came from beginning inventory, 30 came from the Feb. 25 purchase, and 50 came form the March 15 purchase with the remaining units coming from Jan. 15. Fill out the table below with the COGS, Ending Inventory, and Gross Margin under the four different inventory flow assumptions: Specific First-In, Last-In, Weighted Identification First-Out First-Out Average Cost Cost of Goods Sold 3,440 2,970 3,890 Ending Inventory 3.180 4,100 Gross Margin 1,660

Answer 1

First in First out Last in First out Cost of goods sold Ending inventory Gross Margin Specific Identification 3,440 3,630 1,660 2,970 4,100 3,890 3,180 1,210 Weighted Average methode 3,434 3,636 1,666 2,130 LIFO Workings Specific Identification Sales Cost of goods sold Ending inventory Gross Margin 5,100 3,440 3,630 1,660 Beginning inventory Purchases Ending inventory Cost of goods sold Sales Gross Margin 750 6,320 3,180 3,890 5,100 1,210 FIFO Beginning inventory Purchases Ending inventory Cost of goods sold Sales Gross Margin 750 6,320 4,100 2,970 5,100 2,130 Weighted Average methode Beginning inventory Purchases Ending inventory (Refer below) Cost of goods sold Sales Gross Margin 750 6,320 3,636 3,434 5,100 1,666 7,070 350 Actual total cost of all inventory ($750 beginning inventory + $6,320 purchased) total units of inventory (50 beginning inventory + 300 purchased) The weighted average cost per unit ($7070 - 350 units) Ending inventory (180*20.2) 20.2 3,636