Use the information given in Problem 5-1B on page 227 in your textbook to calculate Cost of Goods...

Question

Use the information given in Problem 5-1B on page 227 in your textbook to calculate Cost of Goods Sold and the cost assigned to Ending Inventory using each of the following methods:

1-FIFO

2-LIFO

3-Weighted Average Cost

You MUST show your work in order to receive credit. You must label the problem with the method being used and label your answers "cost of goods sold" and "ending inventory".

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Preeta · Accepted Answer

FIFO METHOD:
	Date
	Purchase
	Sales
	Balance
	
	
	
	
	
	Units
	Per unit Cost
	Total
	Units
	Per unit Cost
	Total
	Units
	Per unit Cost
	Total
	April, 1
	 
	 
	 
	 
	 
	 
	20
	3,000
	60,000
	April, 6
	30
	3,500
	105,000
	 
	 
	 
	20
	3,000
	60,000
	 
	 
	 
	 
	 
	 
	 
	30
	3,500
	105,000
	April, 9
	 
	 
	 
	20
	12,000
	240,000
	15
	3,500
	52,500
	 
	 
	 
	 
	15
	12,000
	180,000
	 
	 
	 
	April, 17
	5
	4,500
	22,500
	 
	 
	 
	15
	3,500
	52,500
	 
	 
	 
	 
	 
	 
	 
	5
	4500
	22,500
	April, 25
	10
	4,800
	48,000
	 
	 
	 
	15
	3,500
	52,500
	 
	 
	 
	 
	 
	 
	 
	5
	4,500
	22,500
	 
	 
	 
	 
	 
	 
	 
	10
	4,800
	48,000
	April, 30
	 
	 
	 
	15
	14,000
	210,000
	5
	4800
	24,000
	 
	 
	 
	 
	5
	14,000
	70,000
	 
	 
	 
	 
	 
	 
	 
	5
	14,000
	70,000
	 
	 
	 
So, Ending inventory = $24,000.
Gross profit = Total Sales - (Beginning inventory + Purchases – Ending Inventory) 
	Total Cost = 105,000 + 22,500 + 48,000 = $175,500
Total Sales = 240,000 + 180,000 + 210,000 + 70,000 + 70,000 = $770,000
Gross Profit = $770,000 – ($60,000 + $175,500 - $24,000)
		= $558,500
LIFO METHOD:
	Date
	Purchase
	Sales
	Balance
	
	
	
	
	
	Units
	Per unit Cost
	Total
	Units
	Per unit Cost
	Total
	Units
	Per unit Cost
	Total
	April, 1
	 
	 
	 
	 
	 
	 
	20
	3,000
	60,

Use the information given in Problem 5-1B on page 227 in your textbook to calculate Cost of Goods Sold and the cost assigned to Ending Inventory using each of the following methods: 1-FIFO 2-LIFO...

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