my work mode : This shows what is correct or incorrect s whet is correct or inco

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my work mode : This shows what is correct or incorrect s whet is correct or incorrect for the work you have completed so far. It does not indicat ack Jan. 1 Beginning Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 175 units $10.00$1,758 130 units$9.80 1,178 250 unitse 5 8.58 2,125 135 units $19.09 140 units $19.00 Totals 555 units $5,845 275 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 280 units, where 250 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory Exercise 5-3 Perpetual: Inventory costing methods LO P1 Required: 1 Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identificatio 2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average 3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO 4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO Prev1 of 1 Next 00 search

Explanation / Answer

1 computation of Ending Inventory and cost of goods sold under specific identification method Ending inventory under specific identification method 280 Unis Units from inventory of Unit cost Total Cost 250 jan 30 purchases $8.50 2125 5 jan 20 purchases $9 45 25 Opening $10 250 2420 Cost of goods sold under specific identification method Number of units sold = Opening+ Purchases - Closing Sotck Number of units sold = 175+ 130 +250-280 =275Units Units Per Unit Total Cost From opening inventory (175-25) 150 $10 1500 From jan 20 thh purchases(130-5) 125 $9 1125 2625 2 Computation of Cost of goods sold and Ending Inventory under Weighted average method Units Price Total cost Opening Inventory 175 $10 1750 Less: Sales -135 $10 -1350 Balance units 40 $10 400 Add Purchases jan -20 130 $9 1170 Balance 170 $9.24 1570 Weifghtted average cost =$1570/170 =$9.24 less: Sale jan25 -140 9.24 -1293.6 Balance 30 9.21 276.4 Weighted average cost per unit =276.40/30 =$9.21 Add:Purchases jan30 250 $8.5 2125 Ending inventory 280 $8.58 2401.4 Weighted average cost =2401.40/280=$8.58 cost of goods sold (275 units ) =1350+1293.60 =2643.60 Ending inventory (280 Units ) =2401.40 3 Computation of Cost of goods sold and Ending Inventory under FIFO method Units Price Total cost Opening Inventory 175 $10 1750 Less: Sales -135 $10 -1350 Balance units 40 $10 400 Add Purchases jan -20 130 $9 1170 Balance 40 $10 400 130 $9 1170 170 1570 Less: Sales 140 units -40 $10 -400 -100 $9 -900 -140 -1300 Balance (170-140) 30 $9 270 Add: purchases 250 250 $8.50 2125 280 2395 Ending Inventory 30 $9 270 250 $8.50 2125 280 2395 Cost of goods sold175 units =1350+400+900=2650 Ending Inventory 280 units =270+2125 =2395 4 Computation of Cost of goods sold and Ending Inventory under LIFO method Units Price Total cost Opening Inventory 175 $10 1750 Less: Sales -135 $10 -1350 Balance units 40 $10 400 Add Purchases jan -20 130 $9 1170 Balance 40 $10 400 130 $9 1170 170 1570 Less: Sales 140 units -130 $9 -1170 -10 $10 -100 -140 -1270 Balance (170-140) 30 $10 300 Add: purchases 250 250 $8.50 2125 280 2425 Ending Inventory 30 $10 300 250 $8.50 2125 280 2425 Cost of goods sold175 units =1350+1170+100=2620 Ending Inventory 280 units =300+2125 =2425

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