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Jensen Company had the following transactions regarding their inventory, They use a perpetual inventory system. 1. Beginning Inventory: 100 units @ $6.00 per unit 100 units @ $7.00 per unit 150 units @ $15.00 per unit 150 units @ $8.00 per unit 150 units @ $15.00 per unit 2. First Purchase: 3. Sale 4. Second Purchase 5. Sale Required Calculate the ending inventory and cost of goods sold using the FIFO method. Calculate the ending inventory and cost of goods sold using the LIFO method. FIFO Date 1 Purchases Ending Inventory Sales 2 3 4 5 Ending Inventory Cost of Goods Sold LO

Jensen Company had the following transactions regarding their inventory, They use a perpetual inventory system. 1. Beginning Inventory: 100 units @ $6.00 per unit 100 units @ $7.00 per unit 150 units @ $15.00 per unit 150 units @ $8.00 per unit 150 units @ $15.00 per unit 2. First Purchase: 3. Sale 4. Second Purchase 5. Sale Required Calculate the ending inventory and cost of goods sold using the FIFO method. Calculate the ending inventory and cost of goods sold using the LIFO method. FIFO Date 1 Purchases Ending Inventory Sales 2 3 4 5 Ending Inventory Cost of Goods Sold LO

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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I need help solving the following (Please Show Calculations, so I know what you did):

  • Calculate the ending inventory and cost of goods sold using the FIFO method.

Note: I also attached an example of how the chart should look like, please follow that example.

 

Beginning inventory of 2,000 units @5,00 per unit. Purchased 8,000 units @ $5.50 per unit. Sold 6,000 units for $12,00 each. Purchased 6,000 units for $6.00 per unit. Sold 7,000 units for $11 per unit. Purchased 4,000 units for $6.50 per unit. 2 Operating expenses were $25,000 for the period Required Calculate the amount of units in ending inventory Calculate ending inventory and cost of goods sold using perpetual fifo, Calculate ending inventory and cost of goods sold using perpetual lifo. Prepare an income statement using FIFO and LIFO. Units in Ending Inventory: FIFO Ending Inventory 2000 x 5 Date Purchases Sales 1 2000 x 5 2 8000 x 5.50 2000 x 5 8000 x 5.50 2000 x 5 4000 x 5.50 4000 x 5.50 4 6,000 x 6 4000 x 5.50 6000 x 6 4000 х 5.50 3000 x 6 3000 x 6 4000 х 6.50 3000 x 6 4000 x 6.50 EN3 456
Transcribed Image Text:Beginning inventory of 2,000 units @5,00 per unit. Purchased 8,000 units @ $5.50 per unit. Sold 6,000 units for $12,00 each. Purchased 6,000 units for $6.00 per unit. Sold 7,000 units for $11 per unit. Purchased 4,000 units for $6.50 per unit. 2 Operating expenses were $25,000 for the period Required Calculate the amount of units in ending inventory Calculate ending inventory and cost of goods sold using perpetual fifo, Calculate ending inventory and cost of goods sold using perpetual lifo. Prepare an income statement using FIFO and LIFO. Units in Ending Inventory: FIFO Ending Inventory 2000 x 5 Date Purchases Sales 1 2000 x 5 2 8000 x 5.50 2000 x 5 8000 x 5.50 2000 x 5 4000 x 5.50 4000 x 5.50 4 6,000 x 6 4000 x 5.50 6000 x 6 4000 х 5.50 3000 x 6 3000 x 6 4000 х 6.50 3000 x 6 4000 x 6.50 EN3 456
Jensen Company had the following transactions regarding their inventory, They use a perpetual inventory system. 1. Beginning Inventory: 100 units @ $6.00 per unit 100 units @ $7.00 per unit 150 units @ $15.00 per unit 150 units @ $8.00 per unit 150 units @ $15.00 per unit 2. First Purchase: 3. Sale 4. Second Purchase 5. Sale Required Calculate the ending inventory and cost of goods sold using the FIFO method. Calculate the ending inventory and cost of goods sold using the LIFO method. FIFO Date Purchases Sales Ending Inventory 1 2 3 4 Ending Inventory Cost of Goods Sold
Transcribed Image Text:Jensen Company had the following transactions regarding their inventory, They use a perpetual inventory system. 1. Beginning Inventory: 100 units @ $6.00 per unit 100 units @ $7.00 per unit 150 units @ $15.00 per unit 150 units @ $8.00 per unit 150 units @ $15.00 per unit 2. First Purchase: 3. Sale 4. Second Purchase 5. Sale Required Calculate the ending inventory and cost of goods sold using the FIFO method. Calculate the ending inventory and cost of goods sold using the LIFO method. FIFO Date Purchases Sales Ending Inventory 1 2 3 4 Ending Inventory Cost of Goods Sold
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