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Received Date No. of Units Unit Cost Issued, No. of Units Balance, No. of Units

ID: 2568712 • Letter: R

Question

Received

Date

No. of Units

Unit Cost

Issued,
No. of Units

Balance,
No. of Units

LINK TO TEXT

LINK TO TEXT

(1)
FIFO

(2)
LIFO

(3)
Average-cost

LINK TO TEXT

LINK TO TEXT

(1)
FIFO

(2)
LIFO

(3)
Average-cost

Some of the information found on a detail inventory card for Metlock Inc. for the first month of operations is as follows.

Received

Date

No. of Units

Unit Cost

Issued,
No. of Units

Balance,
No. of Units

January 2 1,500 $4.11 1,500 7 1,000 500 10 900 4.38 1,400 13 800 600 18 1,300 4.52 600 1,300 20 1,100 200 23 1,600 4.66 1,800 26 1,100 700 28 1,900 4.80 2,600 31 1,600 1,000

Explanation / Answer

a. First in, first out FIFO (Perpectual) Units Cost per Unit Total Beginning Inventory 0 $                       -   $                         -   Purchase as on Jan-02 1500 $                  4.11 $            6,165.00 Cost of Goods Sold on Jan-07    From Jan-02 Inventory 1000 $                  4.11 $            4,110.00 Balance Inventory in Hand    From Jan-02 Inventory 500 $                  4.11 $            2,055.00 Purchase as on Jan-10 900 $                  4.38 $            3,942.00 Cost of Goods Sold on Jan-13    From Jan-02 Inventory 500 $                  4.11 $            2,055.00    From Jan-10 Inventory 300 $                  4.38 $            1,314.00 Balance Inventory in Hand    From Jan-10 Inventory 600 $                  4.38 $            2,628.00 Purchase as on Jan-18 1300 $                  4.52 $            5,876.00 Cost of Goods Sold on Jan-18    From Jan-10 Inventory 600 $                  4.38 $            2,628.00 Balance Inventory in Hand    From Jan-18 Inventory 1300 $                  4.52 $            5,876.00 Cost of Goods Sold on Jan-20    From Jan-18 Inventory 1100 $                  4.52 $            4,972.00 Balance Inventory in Hand    From Jan-18 Inventory 200 $                  4.52 $               904.00 Purchase as on Jan-23 1600 $                  4.66 $            7,456.00 Cost of Goods Sold on Jan-26    From Jan-18 Inventory 200 $                  4.52 $               904.00    From Jan-23 Inventory 900 $                  4.66 $            4,194.00 Balance Inventory in Hand    From Jan-23 Inventory 700 $                  4.66 $            3,262.00 Purchase as on Jan-28 1900 $                  4.80 $            9,120.00 Cost of Goods Sold on Jan-31    From Jan-23 Inventory 700 $                  4.66 $            3,262.00    From Jan-28 Inventory 900 $                  4.80 $            4,320.00 Balance Inventory in Hand    From Jan-28 Inventory 1000 $                  4.80 $            4,800.00 Total Purchases 7200 $         32,559.00 Total Cost of Goods Sold 6200 $         27,759.00 Ending Inventory    From Jan-28 Inventory 1000 $                  4.80 $            4,800.00 Total Ending Inventory 1000 $            4,800.00 b. Larst-in first-out LIFO (Perpectual) Units Cost per Unit Total Beginning Inventory 0 $                       -   $                         -   Purchase as on Jan-02 1500 $                  4.11 $            6,165.00 Cost of Goods Sold on Jan-07    From Jan-02 Inventory 1000 $                  4.11 $            4,110.00 Balance Inventory in Hand    From Jan-02 Inventory 500 $                  4.11 $            2,055.00 Purchase as on Jan-10 900 $                  4.38 $            3,942.00 Cost of Goods Sold on Jan-13    From Jan-10 Inventory 800 $                  4.38 $            3,504.00 Balance Inventory in Hand    From Jan-02 Inventory 500 $                  4.11 $            2,055.00    From Jan-10 Inventory 100 $                  4.38 $               438.00 Purchase as on Jan-18 1300 $                  4.52 $            5,876.00 Cost of Goods Sold on Jan-18    From Jan-10 Inventory 600 $                  4.52 $            2,712.00 Balance Inventory in Hand    From Jan-02 Inventory 500 $                  4.11 $            2,055.00    From Jan-10 Inventory 100 $                  4.38 $               438.00    From Jan-18 Inventory 700 $                  4.52 $            3,164.00 Cost of Goods Sold on Jan-20    From Jan-18 Inventory 700 $                  4.52 $            3,164.00    From Jan-10 Inventory 100 $                  4.38 $               438.00    From Jan-02 Inventory 300 $                  4.11 $            1,233.00 Balance Inventory in Hand    From Jan-02 Inventory 200 $                  4.11 $               822.00 Purchase as on Jan-23 1600 $                  4.66 $            7,456.00 Cost of Goods Sold on Jan-26    From Jan-23 Inventory 1100 $                  4.66 $            5,126.00 Balance Inventory in Hand    From Jan-02 Inventory 200 $                  4.11 $               822.00    From Jan-23 Inventory 500 $                  4.66 $            2,330.00 Purchase as on Jan-28 1900 $                  4.80 $            9,120.00 Cost of Goods Sold on Jan-31    From Jan-28 Inventory 1600 $                  4.80 $            7,680.00 Balance Inventory in Hand    From Jan-02 Inventory 200 $                  4.11 $               822.00    From Jan-23 Inventory 500 $                  4.66 $            2,330.00    From Jan-28 Inventory 300 $                  4.80 $            1,440.00 Total Purchases 7200 $         32,559.00 Total Cost of Goods Sold 6200 $         27,967.00 Ending Inventory    From Jan-02 Inventory 200 $                  4.11 $               822.00    From Jan-23 Inventory 500 $                  4.66 $            2,330.00    From Jan-28 Inventory 300 $                  4.80 $            1,440.00 Total Ending Inventory 1000 $            4,592.00 c. Wighted Average Cost Wighted Average Cost (Periodic) Units Cost per Unit Total Beginning Inventory 0 $                       -   $                         -   Purchase as on Jan-02 1,500 $              4.1100 $            6,165.00 Sale as on Jan-07 1,000 $              4.1100 $            4,110.00 Balance 500 $              4.1100 $            2,055.00 Purchase as on Jan-10 900 $              4.3800 $            3,942.00 Average Cost 1,400 $              4.2836 $            5,997.00 Sale as on Jan-13 800 $              4.2836 $            3,426.86 Balance 600 $              4.2836 $            2,570.14 Purchase as on Jan-18 1,300 $              4.5200 $            5,876.00 Average Cost 1,900 $              4.4453 $            8,446.14 Sale as on Jan-18 600 $              4.4453 $            2,667.20 Sale as on Jan-20 1,100 $              4.4453 $            4,889.87 Balance 200 $              4.4453 $               889.07 Purchase as on Jan-23 1,600 $              4.6600 $            7,456.00 Average Cost 1,800 $              4.6361 $            8,345.07 Sale as on Jan-26 1,100 $              4.6361 $            5,099.76 Balance 700 $              4.6361 $            3,245.30 Purchase as on Jan-28 1,900 $              4.8000 $            9,120.00 Average Cost 2,600 $              4.7559 $         12,365.30 Sale as on Jan-31 1,600 $              4.7559 $            7,609.42 Balance 1,000 $              4.7559 $            4,755.89 Total Purchases 7,200 $         32,559.00 Cost of Goods Sold 6,200 $         27,803.11 Ending Inventory 1,000 $              4.7559 $            4,755.89 Average Cost per Unit = Total Cost / Total Unit Average Cost of Purchase per Unit = Total Purchases / Total Units Purchased Average Cost of Purchase per Unit = $32,559 / 7,200 = $4.522 Average Cost of Goods Sold per Unit = Total Cost of Goods Sold / Total Units Sold FIFO LIFO Weighted Average Cost Total Cost of Goods Sold $ 27,759.00 $        27,967.00 $         27,803.11 Total Units Sold              6,200                    6,200                      6,200 Average Cost of Goods Sold per Unit $        4.4773 $              4.5108 $               4.4844 Ending Inventory FIFO LIFO Weighted Average Cost Ending Inventory in units              1,000                    1,000                      1,000 FIFO LIFO Weighted Average Cost Ending Inventory in units No No No Ending Inventory in $ $    4,800.00 $          4,592.00 $            4,755.89