ACCT 1A Lecture Notes - Lecture 4: Financial Statement, Weighted Arithmetic Mean

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magentamuskrat366

9 Aug 2020

School

Irvine Valley College

Department

Accounting

Course

ACCT 1A

Professor

urell

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Document Summary

When the fifo method is used, the order of costs in and out of inventory is identical for both the perpetual and the periodic inventory systems. Therefore the cost of ending inventory and cost of sales will be the same under both systems. When a periodic inventory system is used, the cost of ending inventory and cost. The weighted average cost per unit is calculated by dividing the cost of goods of sales are computed at the end of the accounting period available for sale by the total units available for sale. Beginning inventory (carried over from prior period) + purchases for the period (accumulated in an inventory account) Cost of sales (measured at every sale, based on perpetual record) = ending inventory (perpetual record updated at every sale) + purchases for the period (accumulated in a purchases account) = cost of goods available for sale. Ending inventory (measured at end of period, based on physical count)

Related Questions

7. FIFO Method: Perpetual Inventory System

Assume the following data with regard to inventory for Vegan Company:

Aug. 1	Inventory	40	units @ $10 per unit	$ 400
8	Purchase	50	units @ $11 per unit	550
22	Purchase	35	units @ $12 per unit	420
Goods available for sale		125	units	$1,370
Aug. 15	Sale	45	units
28	Sale	25	units
Inventory, Aug. 31		55	units

Calculate the cost of ending inventory and cost of goods sold according to the FIFO method under the perpetual inventory system.

	FIFO Method
Cost of ending inventory:	$
Cost of goods sold:	$

ochrewallaby616

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it usees a periodic inventory system. Assume Oahu Kiki's records how the following for the month of January. Sales totaled 330 units. Dates Units Unit Cost Total Cost Beginning Inventory January 1 Units 300 Unit Cost $90 Total Cost $27,000 Purchase January 15 Units 400 Unit Cost 100 Total Cost 40,000 Purchase January 24 Units 300 Unit Cost 120 Total Cost 36,000 Required: 1. Calculate the number and cost of goods available for sale Number of Goods Available for Sale Cost of Goods Available for Sale 2. Calculate the number of units in ending inventory. Ending Inventory units 3. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c)weighted average cost methods. Cost of Ending Inventory FIFO, LIFO, Weighted Average Cost Cost of Goods Sold FIFO, LIFO, Weighted Average Cost

periwinklelizard760

Inventory Costing and Periodic and Perpetual inventorySystems

Redster Company is a manufacturing firm. Presented below isinformation concerning one of its products, called Ander.

Using an Excel spreadsheet, compute the cost of goods sold underthe following situations:

Date	Transaction	Quantity	Price/Cost
1/1	Beginning inventory	2,900	$10
2/12	Purchase	3,300	$15
3/2	Sale	2,400	$28
4/18	Purchase	4,500	$18
5/31	Sale	3,800	$30

a. Periodic system, FIFO cost flow

b. Perpetual system, FIFO cost flow

c. Periodic system, LIFO cost flow

d. Perpetual system, LIFO cost flow

e. Periodic system, weighted-average cost flow

f. Perpetual system, moving-average cost flow

Your submission must show all calculations used to arrive at theanswers. Insert comments, as needed, using Excelâs âAdd a Commentâfunction.

bronzewoodchuck346

ACCT 1A Lecture Notes - Lecture 4: Financial Statement, Weighted Arithmetic Mean

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