Question

FIFO, LIFO, WEIGHTED AVERAGE

- Determine cost of beginning inventory and each purchase, each sale, ending inventory

Beginning inventory 100 units at 150

Purchases

January 3: 100 units at 50

February 10: 150 units at 45

June 3: 90 units at 60

August 2: 200 units at 40

October 10: 210 units at 40

Sales:

January 4: 40 units

March 11: 30 units

June 31: 50 units

September 10: 80 units

November 2: 50 units

After determining the cost of beginning inventory and each purchase, each sale, ending inventory fill in the spreadsheet.

WTD AVE GOODS PURCHASED COST OF GOODS SOLD INVENTORY BALANCE AVG COST date 1/2 1/3 MEGINNING BALANCE $50.00 $5,000.00 $50.00 DIV/0! 414 2/10. DIV/0! #DIV/01 NOIV/! w/3 WDIV/01 6/31 #DIV/01 812 WDIV/0! ala NDIV/0! 10/30 #DIV/01 11/2 ON/O $5,000.00 $5,000.00 $5,000.00 TOTAL AVAILABLE FOR SALE (beginning inventory plus all purchases) TOTAL COST OF GOODS SOLD ENDING INVENTORY

Answer 1

Date First in First Out Method Goods Purchased Goods Sold Balance Units Price Total Units Price Total Units Price Total C=A*B FED*E G=A-D H=1/6 1=C-G 1-Jan 100.00 $ 150.00 $ 15,000.00 3-Jan 100.00 $ 50.00 $5,000.00 200.00 $ 100.00 $ 20,000.00 4-Jan 40.00 $ 150.00 $6,000.00 160.00 $ 87.50 $ 14,000.00 10-Feb 150.00 $ 45.00 $ 6,750.00 310.00 $ 66.94 $ 20,750.00 11-Mar 30.00 $ 150.00 $4,500.00 280.00 $ 58.04 $ 16,250.00 6-Jun 90.00 $ 60.00 $5,400.00 370.00 $ 58.51 $ 21,650.00 30-Jun 20.00 $ 150.00 $3,000.00 350.00 $ 53.29 $ 18,650.00 30-Jun 30.00 $ 50.00 $1,500.00 320.00 $ 53.59 $ 17,150.00 2-Aug 200.00 $ 40.00 $8,000.00 520.00 $ 51.25 $ 26,650.00 10-Sep 70.00 $ 50.00 $3,500.00 450.00 $ 51.44 $ 23,150.00 10-Sep 10.00 $ 45.00 $ 450.00 440.00 $ 51.59 $ 22,700.00 10-Oct 210.00 $ 40.00 $8,400.00 650.00 $ 48.54 $ 31,550.00 11-Nov 50.00 $ 45.00 $2,250.00 600.00 $ 48.83 $ 29,300.00 (In First in First out Method, First Goods Purchased will be sold in First Goods Sold) ETALL Last in First Out Method Date Goods Purchased Goods Sold Balance Units Price Total Units Price Total Units Price B C=A*B F=DE G=A- D H =I/G 1-Jan 100.00 $ 150.00 3-Jan 100.00 $ 50.00 $5,000.00 200.00 $ 100.00 4-Jan 40.00 $ 50.00 $2,000.00 160.00 $ 112.50 10-Feb 150.00 $ 45.00 $ 6,750.00 310.00 $ 79.84 11-Mar 30.00 $ 45.00 $1,350.00 280.00 $ 83.57 6-Jun 90.00 $ 60.00 $5,400.00 370.00 $ 77.84 30-Jun 50.00 $ 60.00 $3,000.00 320.00 $ 80.63 2-Aug 200.00 $ 40.00 $8,000.00 520.00 $ 65.00 10-Sep 80.00 $ 40.00 $3,200.00 440.00 $ 69.55 10-Oct 210.00 $ 40.00 $8,400.00 650.00 $ 60.00 11-Nov 50 $40.00 $2,000.00 600 $ 61.67 (In Last in First out Method, latest Goods Purchased will be sold in First) Total I=C-G $ 15,000.00 $ 20,000.00 $ 18,000.00 $ 24,750.00 $ 23,400.00 $ 28,800.00 $ 25,800.00 $ 33,800.00 $ 30,600.00 $ 39,000.00 $ 37,000.00 Weighted Average Method Date Goods Purchased Goods Sold Balance Units Price Total Units Price Total Units Price Total B C =A*B D E F=D*E G=A-D H=1/6 1=C-G 1-Jan 100.00 $ 150.00 $ 15,000.00 3-Jan 100.00 $ 50.00 $5,000.00 200.00 $ 100.00 $ 20,000.00 4-Jan 40.00 $ 100.00 $4,000.00 160.00 $ 100.00 $ 16,000.00 10-Feb 150.00 $ 45.00 $6,750.00 310.00 $ 73.39 $ 22,750.00 11-Mar 30.00 $ 73.39 $2,201.61 280.00 $ 73.39 $ 20,548.39 6-Jun 90.00 $ 60.00 $5,400.00 370.00 $ 70.13 $ 25,948.39 30-Jun 50.00 $ 70.13 $3,506.54 320.00 $ 70.13 $ 22,441.85 2-Aug 200.00 $ 40.00 $8,000.00 520.00 $ 58.54 $ 30,441.85 10-Sep 80.00 $ 58.54 $4,683.36 440.00 $ 58.54 $ 25,758.49 10-Oct 210.00 $ 40.00 $8,400.00 650.00 $ 52.55 $ 34,158.49 11-Nov 50 $ 52.55 $2,627.58 600 $ 52.55 $ 31,530.91 (In Weighted Average Method, irrespective last & First, any goods available can be sold, but sales price can be taken from Price average price of Stock available before sales ) NEULE

Hence:

Fifo Closing Balance $29300/-

Lifo Closing Balance $37,000/-

Weighted Average $31,531/-