Activities Beginning inventory Purchase Purchase Date January 1 February 10 March 13 March 15 August 21 September 5 September 10 Sales Totals Sales Purchase Purchase Cost of goods available for sale Number of units available for sale Units Acquired at Cost 600 units @ $40 per unit 400 units @ $37 per unit 190 units @ $15 per unit $ 190 units @ $45 per unit 550 units @ $43 per unit 1,930 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. 73,850 1,930 units Units Sold at Retail 2. Compute the number of units in ending inventory. Ending inventory 385 units 805 units @ $70 per unit 740 units @ $70 per unit 1,545 units 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 190 from the March 13 purchase, 140 from the August 21 purchase, and 315 from the September 5 purchase.)
Activities Beginning inventory Purchase Purchase Date January 1 February 10 March 13 March 15 August 21 September 5 September 10 Sales Totals Sales Purchase Purchase Cost of goods available for sale Number of units available for sale Units Acquired at Cost 600 units @ $40 per unit 400 units @ $37 per unit 190 units @ $15 per unit $ 190 units @ $45 per unit 550 units @ $43 per unit 1,930 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. 73,850 1,930 units Units Sold at Retail 2. Compute the number of units in ending inventory. Ending inventory 385 units 805 units @ $70 per unit 740 units @ $70 per unit 1,545 units 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 190 from the March 13 purchase, 140 from the August 21 purchase, and 315 from the September 5 purchase.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Date
January 1
February 10
March 13
March 15
August 21
Activities
Beginning inventory
Purchase
Purchase
Sales
Purchase
Purchase
September 5
September 10 Sales
Totals
Cost of goods available for sale
Number of units available for sale
Units Acquired at Cost
600 units @ $40 per unit
400 units @ $37 per unit
190 units @ $15 per unit
Ending inventory
190 units @ $45 per unit
550 units @ $43 per unit
385 units
1,930 units
Required:
1. Compute cost of goods available for sale and the number of units available for sale.
73,850
2. Compute the number of units in ending inventory.
1,930 units
Units Sold at Retail
805 units @ $70 per unit
740 units @ $70 per unit
1,545 units
3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific
identification. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the
February 10 purchase, 190 from the March 13 purchase, 140 from the August 21 purchase, and 315 from the September
5 purchase.)
Transcribed Image Text:Date
January 1
February 10
Total February 10
March 13
Total March 13
March 15
Total March 15
August 21
Total August 21
September 5
Total September 5
September 10
Total September 10
Totals
Goods Purchased
# of units
400 at
190 at
Cost
per unit
190 at 5
550 at
37.00
15.00
45.00
43.00
# of units
sold
Perpetual FIFO:
Cost of Goods Sold
Cost
per unit
600 at
at
o at
N
$
40.00
$
37.00
$
15.00
Cost of Goods
Sold
"1
$ 24,000.00
0.00
0.00
$ 24,000.00
$ 24,000.00
Inventory Balance
Cost
per unit
$
40.00
# of units
600 at
600 at
400 at
600 at
400 at
190 at
at
N
NNN
70
NNNN
at
at
718
$
40.00
$
10
37.00 =
$
40.00
$
37.00
$
15.00
la
$
on on
in iniin
40.00
40.00 =
$
37.00 =
$
15.00
$
15.00
$
45.00
$
37.00 =
Tun ²²/10/201
$
"1
$
II
15.00
$
11
45.00
"I
$
"I
37.00 =
43.00
$
40.00 $
Inventory
Balance
$
"1
24,000.00
"I
$
24,000.00
14,800.00
$
= $
38.800.00
$
24,000.00
14,800.00
2,850.00
$
41.650.00
UF
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
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VIEWStep 3: Computation of the number of units in ending inventory:
VIEWStep 4: Computation of the cost assigned to ending inventory using FIFO:
VIEWStep 5: Computation of the cost assigned to ending inventory using LIFO:
VIEWStep 6: Computation of the cost assigned to ending inventory using Weighted Average:
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