INVENTORY COST FLOW

Exercise 1
FIFO

Jan. 20 Purchase 750,000

25 Purchase 800,000
Inventory,end 1,550,000

Weighted average method - periodic

Units
Jan. 1 Balance on hand 6,000
5 Purchase 2,000
20 Purchase 2,500
25 Purchase 2,000
GAFS 12,500
Inventory, end 4,500

Exercise 2
FIFO Units
Lot No. 4 500
5 14,500
15,000

Weighted average method - periodic

 Beginning inventory
Purchases: Lot No. 1
2
3
4
5
GAFS

Weighted average

Specific identification
Lot 3
4

Goods available
FIFO 4,855,000
Weighted average 4,855,000
Specific identification 4,855,000

Exercise 3
FIFO
Units Unit cost
Dec. 17 10,000 45
 22 20,000 43
30,000

Weighted average method

Units Unit cost
Dec. 1 10,000 52
7 30,000 50
17 60,000 45
22 20,000 43
GAFS 120,000

Inventory, end 30,000 46.5

Goods available for sale

Inventory, end
Cost of goods sold
OST FLOW

Unit cost Total cost

150 900,000
200 400,000
300 750,000
400 800,000
228 2,850,000
228 1,026,000

Unit cost Total cost

100 50,000
90 1,305,000
1,355,000
 Units Unit cost Total cost
10,000 80 800,000
2,000 100 200,000
8,000 110 880,000
6,000 120 720,000
9,500 100 950,000
14,500 90 1,305,000
50,000 4,855,000

15,000 97.1 1,456,500

Units Unit cost Total cost

6,000 120 720,000
9,000 100 900,000
15,000 1,620,000

Inventory,end Cost of goods sold

1,355,000 3,500,000
1,456,500 3,398,000
1,620,000 3,235,000

Total cost
450,000
 860,000
1,310,000

Total cost
520,000
1,500,000
2,700,000
860,000
5,580,000

5,580,000

5,580,000 5,580,000
(1,310,000) (1,395,000)
4,270,000 4,185,000