Question

cost to the Now computo the ending inventory value using the weighted average mothod (Round the unit cost to two decimal places and the total Ending inventory- Weighted averageL 8000] x Using the ending inventory amounts you computed above, determine the cost of goods sold under each method Units x Unit cost Total cost 28000 Weighted Average LIFO FIFO 22800 22800 £ 22800 Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of goods sold hoose from any list or enter any number in the input fields and then continue to the next question

Answer 1

Solution :

Computation of COGS and ending inventory - Periodic FIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	6000	$3.80	$22,800	6000	$3.80	$22,800.00	0	$3.80	$0.00
Purchases:
Wk 1, Purchases	5000	$3.60	$18,000	5000	$3.60	$18,000.00	0	$3.60	$0.00
Wk 2, Purchases	4000	$3.50	$14,000	0	$3.50	$0.00	4000	$3.50	$14,000.00
Wk 3, Purchases	3000	$3.10	$9,300	0	$3.10	$0.00	3000	$3.10	$9,300.00
Wk 4, Purchases	1000	$2.40	$2,400	0	$2.40	$0.00	1000	$2.40	$2,400.00
Total	19000		$66,500	11000		$40,800.00	8000		$25,700.00

Computation of COGS and ending inventory - Periodic LIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	6000	$3.80	$22,800	0	$3.80	$0.00	6000	$3.80	$22,800.00
Purchases:
Wk 1, Purchases	5000	$3.60	$18,000	3000	$3.60	$10,800.00	2000	$3.60	$7,200.00
Wk 2, Purchases	4000	$3.50	$14,000	4000	$3.50	$14,000.00	0	$3.50	$0.00
Wk 3, Purchases	3000	$3.10	$9,300	3000	$3.10	$9,300.00	0	$3.10	$0.00
Wk 4, Purchases	1000	$2.40	$2,400	1000	$2.40	$2,400.00	0	$2.40	$0.00
Total	19000		$66,500	11000		$36,500.00	8000		$30,000.00

Computation of COGS and ending inventory - Periodic Weighted Average cost method
Particulars	Cost of goods available for sale			Cost of goods sold - Average cost			Ending Inventory - Average cost
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	6000	$3.80	$22,800
Purchases:
Wk 1, Purchases	5000	$3.60	$18,000
Wk 2, Purchases	4000	$3.50	$14,000
Wk 3, Purchases	3000	$3.10	$9,300
Wk 4, Purchases	1000	$2.40	$2,400
Total	19000	$3.50	$66,500	11000	$3.50	$38,500	8000	$3.50	$28,000

Computation of Cost of goods sold
Particulars	LIFO	FIFO	Weighted Average
Beginning Inventory	$22,800.00	$22,800.00	$22,800.00
Purchases	$43,700.00	$43,700.00	$43,700.00
Cost of goods available for sale	$66,500.00	$66,500.00	$66,500.00
Ending inventory	$25,700.00	$30,000.00	$28,000.00
Cost of goods sold	$40,800.00	$36,500.00	$38,500.00