Answer:
Ending Inventory FIFO = 1010,625
Total Sales =$ 19,650,000
Cost Of Goods Sold 18639,375
Explanation:
Date Transaction Number of Units Per Unit Total
Jan. 1 Inventory 7,500 $75.00 $562,500
<u>10 Jan Purchase 22,500 85.00 1,912,500 </u>
Total 30,000
28 Jan Sale 11,250 150.00 1,687,500
<u>30 Jan Sale 3,750 150.00 562,500 </u>
I<u>nventory Ending 15,000 </u><u> </u>
<u>Feb. 5 Sale 1,500 150.00 225,000 </u>
13,500
<u>10 Feb Purchase 54,000 87.50 4,725,000 </u>
67,500
16 Feb Sale 27,000 160.00 4,320,000
<u>28 Feb Sale 25,500 160.00 4,080,000 </u>
<u>Inventory Ending 15,000 </u><u> </u>
Mar. 5 Purchase 45,000 89.50 4,027,500
14 Mar Sale 30,000 160.00 4,800,000
25 Mar Purchase 7,500 90.00 675,000
<u>30 Mar Sale 26,250 160.00 4,200,000</u>
<u>Ending Units 11250 </u>
<u />
Ending Inventory FIFO = 1010,625
7,500 units at $ 90.00 = $ 675,000
3750 units at $ 89.50 = $ 335,625
Total Sales = Sales In Jan + Sales in Feb + Sales In Mar
= 1,687,500 +562,500 +4,320,000 + 4,080,000 +4,800,000+4,200,000 = $ 19,650,000
Cost Of Goods Sold= Sales Less Ending Inventory
Cost Of Goods Sold= $ 19,650,000- 1010,625= 18639,375
<em><u>3. Journal Entries</u></em>
<em> Account Receivable $ 19,650,000 Dr.</em>
<em>Sales $ 19,650,000 Cr.</em>
<em>Cost Of Goods Sold 18639,375 Dr.</em>
<em>Merchandise Inventory 18639,375 Cr.</em>
<em />
<em>4.</em><em> Ending Inventory FIFO = 1010,625</em>
<em>5. LIFO Ending inventory would be lower as price is increasing. </em>
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