The following are the transactions for the month of July July 1 Beginning Invent

Question

The following are the transactions for the month of July July 1 Beginning Inventory July 13 Purchase July 25 Sold Units Unit Cost Selling Price 60 300 12 $10 (100) $ 16 July 31 Ending Inventory 260 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under (a) FIFO, (b) LIFO, and (c) weighted average cost. Assume a periodic inventory system is used (Round "Cost per Unit" to 2 decimal places and your final answers to nearest whole dollar amount.) (a)FIFO Units Cost per Beginning Inventory Purchases July 13 Goods Available for Sale Cost of Goods Sold Total Cost of Goods Sold Ending Inventory Sales Cost of Goods Sold Gross Proft (b)LIFO Cost per Total Beginning Inveniory Purchases July 13 Goods Avalable for Sale

Explanation / Answer

Answer =   CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER FIFO METHOD PURHASES COST OF GOODS SOLD CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost 1 Beginning inventory 60 $10 $600 60 $10 $600 2 Purchases 300 12 $3,600 60 $10 $600 300 12 $3,600 3 Available For sale 360 $4,200 Available For sale 360 60 $10 $600 Sales   100 40 12 $480 260 12 $3,120 Closing Stock 260 Total 100 1080 260 3120 Unit Amoun COGS as per FIFO Method 100 $1,080.00 Closing Balance as per FIFO 260 3120 CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER LIFO METHOD PURHASES COST OF GOODS SOLD CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost 1 Beginning inventory 60 $10 $600 60 $10 $600 2 Purchases 300 12 $3,600 60 $10 $600 300 12 $3,600 3 Available For sale 360 $4,200 Available For sale 360 100 $12 $1,200 60 12 $720 Sales   100 200 12 $2,400 Closing Stock 260 Total 100 1200 260 3120 Unit Amoun COGS as per LIFO Method 100 $1,200.00 Closing Balance as per LIFO 260 $3,120.00 CALCULATION OF THE UNIT COST AS PER AVERAGE COST METHOD Units (A) Rate Per unit Total Cost Opening 60 $          10.00 $               600.00 Purchase 1 = 300 $          12.00 $            3,600.00 Total 360 $            4,200.00 Average Unit Cost =              4,200.00 "/" By $               360.00 Average Unit Cost = $                11.67 Per Units Cost of goods sold =                  100.00 "X" By $                  11.67 Cost of goods sold =                    1,167 Closing stock =                  260.00 "X" By $                  11.67 Closing stock = $                3,033 Answer = FIFO LIFO Average Cost Sales (100 units X $ 16) $1,600.00 $1,600.00 $1,600.00 cosT OF Goods Sold $1,080.00 $1,200.00 $1,167 Gross Profit $520.00 $400.00 $433

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