The following units are available for sale during the year: January 1, 2011 Begi

Question

The following units are available for sale during the year:

                                   

   January 1, 2011        Beginning inventory    10 units @ $ 18

   April 3, 2011            Purchases                   30 units @ $ 20

August 31, 2011        Purchases                   28 units @ $ 25

September 29, 2011 Purchases                   17 units @ $ 30

December 31, 2011 Ending inventory         21 units

Detemine ending inventory cost by (a) Fifo, (b) Lifo, and (c) Average Cost. If the selling price per unit is $ 35, determine the Total Revenue, Gross Profit and Cost of Goods sold under (a) Fifo, (b) Lifo and(c) Average. The ending inventory as indicated above was 21 units. Use the format below for your answers. Use excel for calculations.

FIFO

AVERAGE

Ending Inventory

FIFO

LIFO Average

Explanation / Answer

CALCULATE ENDING INVENTORY :

CALCULATE GROSS PROFIT :

AVERAGE

FIFO LIFO AVERAGE Beginning inventory 180 180 180 Purchase 1810 1810 1810 Cost of goods available for sale 1990 1990 1990 Ending inventory (17*30+4*25)=610 (10*18+11*20)=400 (1990/85)*21=492 Cost of goods sold 1380 1590 1498

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