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    Income Statement

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    Hiền Phạm
    The document provides an example of calculating cost of goods sold and ending inventory using the average cost and FIFO inventory costing methods. For March, under average costing the total cost is $13040 and cost of goods sold is $8525.50. For April, total cost is $19073.50 and cost of goods sold is $10596.40. Under FIFO costing for March, cost of goods sold is $8360 and ending inventory cost is $52. For April, various purchases and sales are listed with ending inventory of $3230.

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    Income Statement

    Uploaded by

    Hiền Phạm
    22 views2 pages
    The document provides an example of calculating cost of goods sold and ending inventory using the average cost and FIFO inventory costing methods. For March, under average costing the total cost is $13040 and cost of goods sold is $8525.50. For April, total cost is $19073.50 and cost of goods sold is $10596.40. Under FIFO costing for March, cost of goods sold is $8360 and ending inventory cost is $52. For April, various purchases and sales are listed with ending inventory of $3230.

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    Income-Statement

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    The document provides an example of calculating cost of goods sold and ending inventory using the average cost and FIFO inventory costing methods. For March, under average costing the total cost is $13040 and cost of goods sold is $8525.50. For April, total cost is $19073.50 and cost of goods sold is $10596.40. Under FIFO costing for March, cost of goods sold is $8360 and ending inventory cost is $52. For April, various purchases and sales are listed with ending inventory of $3230.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    22 views2 pages

    Income Statement

    Uploaded by

    Hiền Phạm
    The document provides an example of calculating cost of goods sold and ending inventory using the average cost and FIFO inventory costing methods. For March, under average costing the total cost is $13040 and cost of goods sold is $8525.50. For April, total cost is $19073.50 and cost of goods sold is $10596.40. Under FIFO costing for March, cost of goods sold is $8360 and ending inventory cost is $52. For April, various purchases and sales are listed with ending inventory of $3230.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    3.

    a. Average-cost method

     March

    Date Quality Cost per unit Total cost


    March 1 160 $49 $7840
    March 10 100 $52 $5200
    Total quality = 260

    Total cost = $13040

    Cost of the ending inventory = 13040/260 = $50.15

    Quality of goods sold = 260 – Ending Inventory = 260 – 90 = 170

    Cost of goods sold for March = 170 x $50.15 = $8525.5

     April

    Date Quality Cost per unit Total cost


    April 1 90 $50.15 $4513.5
    April 4 120 $53 $6360
    April 15 50 $54 $2700
    April 23 (200)
    April 25 100 $55 $5500
    Total quality = 90 + 120 + 50 + 100 = 360

    Total cost = $19073.5

    Cost of the ending inventory = 19073.5/360 = $52.98

    Quality of goods sold = 200

    Cost of goods sold for April = 200 x $52.98 = $10596.4

    b. FIFO method

     March:
    Date Purchase Sale Inventory
    Cost per Cost per Cost Total
    Quality Quality Quality
    unit unit per unit cost
    March 1 160 $49 160 $49 $7840
    100 $52 160 $49
    March 10 $13040
    100 $52
    160 $49 $4680
    90 $52
    10 $52
    Cost of the ending inventory = $52

    Cost of goods sold for March = 160 x $49 + 10 x $52 = $8360

     April

    Date Purchase Sale Inventory


    Cost per Cost per Cost Total
    Quality Quality Quality
    unit unit per unit cost
    April 1 90 $50.15 90 $50.15 $4513.5
    120 $53 90 $50.15
    April 4 $10873.5
    120 $53
    50 $54 90 $50.15
    April 15 120 $53 $13573.5
    50 $54
    90 $50.15 10 $53
    April 23 $3230
    110 $53 50 $54

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