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Chapter 11

The document shows inventory calculations using FIFO and average costing methods. Under FIFO, the cost of goods sold is $2,700,000 and ending inventory is $840,000. Under the average cost method, the cost of goods sold is $2,530,000 and ending inventory is $1,010,000. Both methods calculate cost of goods sold and ending inventory based on periodic inventory purchases and sales.

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Anonn
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122 views

Chapter 11

The document shows inventory calculations using FIFO and average costing methods. Under FIFO, the cost of goods sold is $2,700,000 and ending inventory is $840,000. Under the average cost method, the cost of goods sold is $2,530,000 and ending inventory is $1,010,000. Both methods calculate cost of goods sold and ending inventory based on periodic inventory purchases and sales.

Uploaded by

Anonn
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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FIFO Units Unit Cost Total Cost

Dec-17 10,000 45 450,000


22 20,000 43 860,000
30,000 1,310,000

Average Method
Dec-01 10,000 52 520,000
7 30,000 50 1,500,000
17 60,000 45 2,700,000
22 20,000 43 860,000
Available for sale 120,000 5,580,000

Inventory 30,000 46.5 1,395,000


(5,580,000/120,000)

FIFO AVERAGE
Goods Available for Sale
Less: Inventory - Decemeber31
Cost of Goods Sold
Required 1 FIFO Perpetual
PURCHASES SALES
Units Unit cost Total Cost Units Unit cost
1
6 3000 250.00 750,000.00

9 1,000 270.00
1,000 250.00
14 6000 280.00 1,680,000.00

25 4,000 210.00 840,000.00

31 2000 250.00
6,000 280.00

Ending Inventory= 840,000.00

Date Amount
Match 9 270,000.00
250,000.00
31 500,000.00
1,680,000.00
Cost of Goods sold 2,700,000.00

2 Moving Average Method


Units Unit Cost Total Cost
March 1 Beg. Bal 1000 270.00 270,000.00
6 Purchases 3000 250.00 750,000.00
Balance 4000 255.00 1,020,000.00
9 Sale 2000 255.00 510,000.00
Balance 2000 255.00 510,000.00
14 Purchases 6,000 280.00 1,680,000.00
Balance 8000 273.75 2,190,000.00
25 Purchases 4,000 210.00 840,000.00
12000 252.50 3,030,000.00
31 Sale 8,000 252.50 2,020,000.00
4,000 252.50 1,010,000.00

Ending Inventory= 1,010,000.00

Date Amount
Match 9 510,000.00
31 2,020,000.00
Cost of Goods sold 2,530,000.00
SALES BALANCE
Total Cost Units Unit cost Total Cost
1,000 270.00 270,000.00
1,000 270.00 270,000.00
3,000 250.00 750,000.00
270,000.00
2000 250.00 500,000.00
250,000.00
2,000 250.00 500,000.00
6,000 280.00 1,680,000.00
2,000 250.00 500,000.00
6,000 280.00 1,680,000.00
4,000 210.00 840,000.00
500,000.00
4,000 210.00 840,000.00
1,680,000.00

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