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3 years ago

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A company's inventory records indicate the following data for the month of January: Jan. 1 Beginning 180 units at $9 each Jan. 5

Purchased 170 units at $10 each Jan. 9 Sold 300 units at $35 each Jan. 14 Purchased 200 units at $11 each Jan. 20 Sold 150 units at $35 each Jan. 30 Purchased 230 units at $12 each What is the amount of cost of goods sold for January, if the company uses the LIFO, FIFO and weighted average perpetual inventory system?

1 answer:

katovenus [111]3 years ago

6 0

Answer:

The amount of cost of goods sold for January:

LIFO FIFO Weighted Average

Cost of goods sold $4,520 $4,420 $4,452

Explanation:

a) Data and Calculations:

Date Description Units Unit Cost/Price Total Cost Total Revenue

Jan. 1 Beginning 180 units at $9 each $1,620

Jan. 5 Purchased 170 units at $10 each 1,700

Jan. 9 Sold (300) units at $35 each $10,500

Jan. 14 Purchased 200 units at $11 each 2,200

Jan. 20 Sold (150) units at $35 each 5,250

Jan. 30 Purchased 230 units at $12 each 2,760

Total 780 / 450 $8,280 $15,750

b) Cost of goods sold:

LIFO:

Jan. 9 Sold (300) 170 units at $10 = $1,700

130 units at $9 = 1,170

Jan. 20 Sold (150) 150 units at $11 = 1,650

Cost of goods sold = $4,520

c) FIFO:

Jan. 9 Sold (300) 180 units at $9 = $1,620

120 units at $10 = 1,200

Jan. 20 Sold (150) 50 units at $10 = 500

100 units at $11 = 1,100

Cost of goods sold = $4,420

d) Weighted-Average:

Jan. 9 Sold (300) 300 units at $9.49 = $2,847

Jan. 20 Sold (150) 150 units at $10.70 = 1,605

Cost of goods sold = $4,452

Weighted Average Cost at each point of sale:

$9.49 = ($1,620 + $1,700)/350 units

$10.70 = (($9.49*50) + $2,200)/250 units

e) LIFO = Last In, First Out is based on the assumption that the items sold are from the last inventory purchased instead of the first.

FIFO = First In, First Out is based on the assumption that the items sold are from the first inventory instead of the last.

Weighted-Average: This method averages the cost of inventory to determine the unit cost.

Under the perpetual inventory system, the inventory costs are recorded immediately after an inventory transaction and not at the end of a period.

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3 years ago

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chubhunter [2.5K]

Answer:

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Explanation:

Given:

Budgeted sales for January = 30,000

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3 years ago

A periodic review system is __________. a. a term used to indicate the amount of demand b. to be met under conditions of demand

vladimir2022 [97]

Answer:

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3 years ago

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Answer:

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Answer:

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3 years ago