Question

Flint Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gizmo for the month of March. Flint Company uses the perpetual inventory system.

				Purchases						Sales
				Units			Unit Cost			Units			Selling Price/Unit
3/1		Beginning inventory		130			$55
3/3		Purchase		78			$60
3/4		Sales								78				$120
3/10		Purchase		260			$65
3/16		Sales								117				$130
3/19		Sales								91				$130
3/25		Sales								65				$130
3/30		Purchase		52			$75

Using the FIFO assumption, calculate the amount charged to cost of goods sold for March.

Cost of goods sold

$enter Cost of goods sold in dollars

eTextbook and Media

  

  

Using the FIFO assumption, calculate the value of ending inventory for March.

Ending Inventory

$enter Ending Inventory in dollars

eTextbook and Media

  

  

Using the moving average cost method, calculate the amount assigned to the inventory on hand on March 31. (Round average cost per unit to 3 decimal places, e.g. 5.254 and final answer to 2 decimal places, e.g. 2,520.56.)

Amount assigned to the inventory

enter Amount assigned to the inventory in dollars

eTextbook and Media

  

  

Using the LIFO assumption, calculate the amount assigned to the inventory on hand on March 31.

Amount assigned to the inventory

$enter Amount assigned to the inventory in dollars

eTextbook and Media

  

  

Using the LIFO assumption, calculate the amount charged to cost of goods sold for March.

Cost of goods sold

$enter Cost of goods sold in dollars

Answer 1

FIFO method states that goods purchased first are sold first
LIFO Method states that goods purchased later are sold first
Moving average method uses average cost for the purpose of calculation
Number of units sold = 78+117+91+65 = 351 units
Units in ending inventory = 169 units
Cost of Goods sold under FIFO	=130*55+78*60+143*65	21125
Value of Ending Inventory	=130*55+78*60+260*65+52*75-21125	11505
Moving Average
Cost of Goods sold
3/4	4436.25
3/16-3/25	20070.96
Total COGS	24507.21
Value of ending Inventory	8122.79
Ending Inventory as per LIFO	9685
Cost of Goods sold	22945