PRACTICE 17

June 1: purchased 1,000 units of product Z at $100 plus VAT each for cash
June 5: purchased 3,000 units of product Z alt $150 plus VAT each for cash
June 6: purchased 2,000 units of product Z at $175 plus VAT each for cash
June 8: returned 150 units of product Z that were purchased on June 8
June 10: sold 5,000 units of product Z at $200 plus VAT each for cash
REQUIRED:
1. Record the above transactions on the subsidiary inventory ledger and determine the
cost of goods sold for the June 10 sale under FIFO. (Ending inventory must be
$148,750)
2. Record the above transactions on the subsidiary inventory ledger and determine the
cost of goods sold for the June 10 sale under LIFO. (Ending inventory must be
$85,000)
3. Record the above transactions on the subsidiary inventory ledger and determine the
cost of goods sold for the June 10 sale under AVERAGE COST. (Ending inventory
must be $126,955)
4. Prepare Journal entries for the above transactions using FIFO
Fill out the following formats BY HAND.

IN

FIFO
UNITS
OUT

IN

LIFO
UNITS
OUT

DATE

DATE

DATE
IN

UNIT
COST
AVAILABLE

DEBIT

VALUES
CREDIT BALANCE

DEBIT

VALUES
CREDIT BALANCE

UNIT
COST
AVAILABLE

AVERAGE COST
UNITS
OUT
AVAILABLE

Unti
cost

average
cost

DEBIT

VALUES
CREDIT
BALANCE