The following information is available from ABC co.'s inventory records for January 2017.
# of Units Unit cost Unit price
January 1, 2017 2,600 $10
Purchases on 1/5 2,400 11
Sales on 1/8 4,000 $20
Purchase on 1/15 8,000 12
Sales on 1/22 7,000 $20
Instructions: Compute the costs of goods sold for January 2017 using the following methods.
1) FIFO with perpetual inventory.
2) Weighted average. (Periodic system).
3) Moving average. (Perpetual system).
4) LIFO with periodic inventory.
5) LIFO with perpetual inventory.
The following information is available from ABC co.'s inventory records for January 2017.
# of Units Unit cost Unit price
January 1, 2017 2,600 $10
Purchases on 1/5 2,400 11
Sales on 1/8 4,000 $20
Purchase on 1/15 8,000 12
Sales on 1/22 7,000 $20
Instructions: Compute the costs of goods sold for January 2017 using the following methods.
1) FIFO with perpetual inventory.
2) Weighted average. (Periodic system).
3) Moving average. (Perpetual system).
4) LIFO with periodic inventory.
5) LIFO with perpetual inventory.
Related questions
Ferris Company began 2018 with 4,000 units of its principal product. The cost of each unit is $7. Merchandise transactions for the month of January 2018 are as follows:
| Purchases | |||||||||
| Date of Purchase | Units | Unit Cost* | Total Cost | ||||||
| Jan. 10 | 3,000 | $ | 8 | $ | 24,000 | ||||
| Jan. 18 | 4,000 | 9 | 36,000 | ||||||
| Totals | 7,000 | 60,000 | |||||||
*Includes purchase price and cost of freight.
| Sales | ||
| Date of Sale | Units | |
| Jan. 5 | 2,000 | |
| Jan. 12 | 1,000 | |
| Jan. 20 | 3,000 | |
| Total | 6,000 | |
5,000 units were on hand at the end of the month.
Required:
Calculate January's ending inventory and cost of goods sold for the month using each of the following alternatives:
1. FIFO, periodic system.
2. LIFO, periodic system.
3. LIFO, perpetual system.
4. Average cost, periodic system.
5. Average cost, perpetual system.
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.
