Question

114 Problem 5-4A Periodic: Alternative cost flows LOP3 Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Units Sold at Retail Date Jan. Feb. Mar. Mar. Aug. Sept. Sept. Units Acquired at Cost 600 units @ $45 per unit 400 units @ $42 per unit 200 units @ $27 per unit 1 10 13 15 21 5 10 Activities Beginning inventory Purchase Purchase Sales Purchase Purchase Sales Totals 800 units @ $75 per unit 100 units 500 units @ $50 per unit @ $46 per unit @ $75 per unit 600 units 1,400 units 1,800 units

i need it to be somves in those forms as soon as possible please

Answer 1

Particulars Ending inventory Cost of Good Sold FIFO $18,400 $58,800 LIFO $18,000 $59,200 Average Cost $17,156 $60,044 Rate Periodic inventory System: In this system, the cost of sales and inventory are determined as the end of the accounting period. Ans 3(a) First in, first out method (FIFO): In this method it is assumed that inventory which is purchased first will be sold first and the inventory will consist of recent purchases. Cost of Goods Sold Ending inventory Date Unit Amount Date Unit Rate Amount Jan 1 600 $45 $27,000 Sep 5 400 $46 $18,400 Feb 10 400 $42 $16,800 Mar 13 200 $5,400 Aug 21 100 $50 $5,000 Sep 5 100 $46 $4,600 1,400 $58,800 400 $18,400 $27 Ans 3(b) Last in, first out method (LIFO): In this method it is assumed that inventory which is purchased last will be sold first and the inventory will consist of old purchases. Cost of Goods Sold Ending inventory Date Unit Rate Amount Date Unit Rate Amount Sep 5 500 $46 $23,000 Jan 1 400 $45 $18,000 Aug 21 100 $50 $5,000 Mar 13 200 $27 $5,400 Feb 10 400 $42 $ 16,800 Jan 1 200 $45 $9,000 1,400 $59,200 400 $18,000

Ans 3(c) In weighted average cost method per unit purchase is derived by adding cost opening inventory and purchase made during the year and then dividing it by the adding the units of opening inventory and units purchased during the year Date Unit Rate Amount Jan 1 600 $45 $27,000 Feb 10 400 $42 $16,800 Mar 13 200 $27 $5,400 Aug 21 $50 $5,000 Sep 5 500 $23,000 1,800 $77,200 Average Cost ($77200/1800] $42.89 Particulars Unit Rate L Amount Cost of Good Sold 1,400 $42.89 $60,044 Ending inventory 400 $42.89 $17,156 100 $46 Ans 3(d) Specific Identification: This method refers the tracking and costing of inventory based on the movement of specific, identifiable inventory items in and out of stock. In the question for specific identification method, no details are given i.e. from whihc purchases the items were sold. These detail are required to solve for specific identification. Ans 4 Particulars Sales ($75 x 1400] Less: COGS Gross Profit FIFO $1,05,000 ($58,800) $46,200 LIFO $1,05,000 ($59,200) $45,800 Average Cost $1,05,000 ($ 60,044) $44,956