Answers
Requirement a
FIFO | LIFO | Weighted Average | |
Ending Inventory | $ 1,170 | $ 600 | $ 815 |
Requirement b
FIFO | LIFO | Difference | |
Gross profit | $ 5,930.00 | $ 5,360.00 | $ 570.00 |
Working
Units | Cost per unit | value | |
Beginning Balance | $ 0 | ||
Purchases | |||
400 | $ 4.00 | $ 1,600 | |
90 | $ 5.00 | $ 450 | |
250 | $ 7.00 | $ 1,750 | |
60 | $ 9.00 | $ 540 | |
Total | 800 | $ 4,340 |
.
Average Cost of Inventory | ||
Units | (A) | 800 |
Total Cost | (B) | $ 4,340 |
Average Cost | (C=B/A) | $ 5.43 |
.
FIFO | ||||
Total Units Available for sale | 800 | |||
Units Sold | 650 | |||
Closing Stock in Units | 150 | |||
Valuation | ||||
Ending Inventory | 60 | @ | $ 9.00 | $ 540 |
90 | @ | $ 7.00 | $ 630 | |
Value Of Ending Inventory | $ 1,170 | |||
Cost of Goods sold | $ 3,170 | |||
LIFO | ||||
Total Units Available for sale | 800 | |||
Units Sold | 650 | |||
Closing Stock in Units | 150 | |||
Valuation | ||||
Ending Inventory | 150 | @ | $ 4.00 | $ 600 |
0 | @ | $ 17.00 | $ 0 | |
Value Of Ending Inventory | $ 600 | |||
Cost of Goods sold | 4340 minus 600 | $ 3,740 | ||
Weighted Average method | ||||
Total Units Available for sale | 800 | |||
Units Sold | 650 | |||
Closing Stock in Units | 150 | |||
Valuation | ||||
Ending Inventory | 150 | @ | $ 5.43 | $ 815 |
Value Of Ending Inventory | $ 815 | |||
Cost of Goods sold | (Total Purchase and opening stock Minus Closing Stock) | $ 3,526 |
FIFO | LIFO | Difference | |
Sales revenue | $ 9,100.00 | $ 9,100.00 | |
Cost of goods sold | $ 3,170.00 | $ 3,740.00 | |
Gross profit | $ 5,930.00 | $ 5,360.00 | $ 570.00 |
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