Professional Documents
Culture Documents
Chap 6
Chap 6
Cost of goods available for sale and number of units available for sale
Total
Unit purchase Total sale
Date Activities acquired Cost cost Unit sold Price price
1-Apr Beginning Inventory 15 3,000 45,000
6-Apr Purchase 35 3,500 122,500
9-Apr Sales 18 12,000 216,000
17-Apr Purchase 8 4,500 36,000
25-Apr Purchase 10 4,580 45,800
30-Apr Sales 30 14,000 420,000
Goods Inventory
Date purchased COGS balance
1-Apr 45,000
6-Apr 122,500 167,500
9-Apr 55,500 112,000
17-Apr 36,000 148,000
25-Apr 45,800 193,800
30-Apr 105,000 88,800
160,500
Way 2:
Total cost available for sales 249,300
Less : COGS 15 @ 3,000 45,000
33 @ 3,500 115,500
160,500
b. LIFO
Way 1:
Goods Inventory
Date purchased COGS balance
1-Apr 45,000
6-Apr 122,500 167,500
9-Apr 63,000 104,500
17-Apr 36,000 140,500
25-Apr 45,800 186,300
30-Apr 123,800 62,500
186,800
Way 2:
Total cost available for sales 249,300
Less : COGS 30 @ 3,500 105,000
8 @4,500 36,000
10 @ 4,580 45,800
62,500
c. Specific identification
Ending inventory included:
8 units from beginning inventory
10 units from the April 6 purchase
20 units from the April 30
10 units from the April 25 purchase
COGS 74,500
d. Weighted average
Way 1:
Units Average
Goods Inventory available cost per
Date purchased COGS balance for sale unit
1-Apr 45,000 15
6-Apr 122,500 167,500 50 3350
9-Apr 60,300 107,200 32
17-Apr 36,000 143,200 92
25-Apr 45,800 189,000 192 984.375
30-Apr 113,400
173,700
4. Compute gross profit
Specific
identificati Weighted
FIFO LIFO on average
Sales 636,000 636,000 636,000 636,000
COGS 160,500 186,800 174,800 173,700
Gross profit 475,500 449,200 461,200 462,300