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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.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 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.)
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
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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