You extracted the following info from WAN Co. regarding its inventory transactio

Question

You extracted the following info from WAN Co. regarding its inventory transactions for last three months. The Co. uses perpetual inventory system. 4. Date Transactions # of Units Per Unit Total 2,500 7,500 3,750 1,250 $150,000 $510,000 $60.00 $68.00 $120.00 $450,000 $120.00 $150,000 $120.00 60,000 $70.00 $125.00 1,125,000 $125.00 $1,062,500 $71.60 $125.00 $1,250,000 $72.00 S125.00 S1,093,750 Inventory Purchase Oct 10 Oct 28 Oct 30 Purchase Nov10 Nov16 Nov28 18,000 $1,260,000 8,500 15,000 10,000 2,500 8,750 Purchase $1,074,000 Dec 25 Purchase $180,000 Dec 30 a. Record the inventory, purchases, and COGS data - using LIFO method. Follow b. Determine the total sales, total COGS, and gross profit for the period. 10 points Exhibit 5 in the book. 10 points Determine the ending inventory s of December 31. 5 points

Explanation / Answer

Requirement a LIFO Method Date Description Quantity Unit cost total Cost Sold Quantity Unit selling price Sales COGS Unit cost Cost of goods sold Inventory Unit cost Inventory cost Gross Profit Oct. 1 Begining inventory 2500 60.00                                 1,50,000 Oct. 10 Purchase 7500 68.00     5,10,000 10000 66.00                                 6,60,000 (7500X68)+(2500X60) Oct. 28 Sale 3750 120.00         4,50,000 68.00                                   2,55,000 6250 64.80                                 4,05,000     1,95,000 (3750*68) (3750X68)+(2500X60) Oct. 30 Sale 1250 120.00         1,50,000 68.00                                       85,000 5000 64.00                                 3,20,000        65,000 (1250*68) (2500X68)+(2500X60) Nov. 5 Sale 500 120.00            60,000 68.00                                       34,000 4500 63.56                                 2,86,000        26,000 (500*68) (2000X68)+(2500X60) Nov. 10 Purchase 18000 70.00 12,60,000 22500 68.71                               15,46,000                  -   (18000X70 )+ (2000X68) +(2500X60) Nov. 16 Sale 9000 125.00      11,25,000 70.00                                   6,30,000 13500 67.85                                 9,16,000     4,95,000 (9000X70 )+ (2000X68) +(2500X60) Nov. 28 Sale 8500 125.00      10,62,500 70.00                                   5,95,000 5000 64.20                                 3,21,000     4,67,500 (500X70 )+ (2000X68) +(2500X60) Dec. 5 Purchase 15000 71.60 10,74,000 20000                               13,95,000                  -   (15000X71.60)+ (500X70) + (2000X68) +(2500X60) Dec. 14 Sale 10000 125.00      12,50,000 71.60                                   7,16,000 10000 67.90                                 6,79,000     5,34,000 (5000X71.60)+(500X70) + (2000X68) +(2500X60) Dec. 25 Purchase 2500 72.00     1,80,000 12500 68.72                                 8,59,000                  -   (2500X72 ) + (5000X71.60)+(500X70) + (2000X68) +(2500X60) Dec. 30 Sale 8750 125.00      10,93,750 71.31                                   6,24,000 3750 62.67                                 2,35,000     4,69,750 (2500X72)+ (5000X71.60) +(500X70)+(750X68) (1250X68) +(2500X60) Dec. 30 Ending Inventory 3750 62.67                                 2,35,000 Total        43,000 70.33 30,24,000      41,750      51,91,250 70.40                                 29,39,000 22,52,250 Requirement b Total Sales 51,91,250 Total COGS 29,39,000 Gross Profit 22,52,250 Requirement c Ending Inventory     2,35,000

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