Johnny Football Shop began operations on January 2, 2017. The following stock re

Question

Johnny Football Shop began operations on January 2, 2017. The following stock record card for footballs was taken from the records at the end of the year.

Date

Voucher

Terms

Units
Received

Unit Invoice
Cost

Gross Invoice
Amount

A physical inventory on December 31, 2017, reveals that 100 footballs were in stock. The bookkeeper informs you that all the discounts were taken. Assume that Johnny Football Shop uses the invoice price less discount for recording purchases.

1. Compute the December 31, 2017, inventory using the FIFO method. (Round per unit and final answer to 2 decimal paces, e.g. 35.57.)

$________

$________

Date

Voucher

Terms

Units
Received

Unit Invoice
Cost

Gross Invoice
Amount

1/15 10624 Net 30 50 $20 $1,000 3/15 11437 1/5, net 30 65 16 1,040 6/20 21332 1/10, net 30 90 15 1,350 9/12 27644 1/10, net 30 84 12 1,008 11/24 31269 1/10, net 30 76 11 836 Totals 365 $5,234

Explanation / Answer

Ans. 1 Ending Inventory Using FIFO method: 1079.76 Ending inventory units = 100 76 @ 10.89 827.64 24 @ 11.88 252.12 Total 1079.76 *11 - 0.01(11) 10.89 *12 - 0.01(12) 11.88 Ans. 2 Cost of Goods Sold using the LIFO method: 3399.66 COGS (units) = Total Units available - Ending inventory units 365 - 100 265 *Calculation 76 @ 10.89 827.64 10.89 =   11 - 0.01(11) 84 @ 11.88 997.92 11.88 = 12 - 0.01(12) 90 @ 14.85 1336.5 14.85 = 15 - 0.01(15) 15 @ 15.84 237.6 15.84 = 16 - 0.01(16) 265 Units 3399.66 There is discount rate of 1% is given so the rates are calculated on the base of it.

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