Answer:
1. $77,200 Cost of goods available for sale & 1,800 units available for sale
2. 400 units in ending inventory
3. FIFO $18,400, LIFO $18,000, WEIGHTED AVERAGE $17,760 and SPECIFIC $18,200
4. FIFO $46,200, LIFO $45,800, WEIGHTED AVERAGE $45,560 and SPECIFIC $46,000
Explanation:
1. Cost of goods available for sale is computed as follows:
1-Jan 600 45 27,000
10-Feb 400 42 16,800
13-Mar 200 27 5,400
21-Aug 100 50 5,000
<u>5-Sep 500 46 23,000 </u>
1,800 77,200
2.Units ending inventory is computed by deducting available units for sale 1,800 by the units sold 1,400 equals 400 units.
3. Ending inventory is computed as follows:
FIFO
5-Sep 400 x $46 = $18,400.00
LIFO
Jan 1 400 x $45 = $18,000.00
SPECIFIC
10-Feb 100 x $42 = 4,200.00
21-Aug 50 x $50 = 2,500.00
<u>5-Sep 250 x $46 = 11,500.00</u>
400 18,200.00
WEIGHTED AVERAGE
Jan 1 600 x $45.00 = 27,000.00
10-Feb 400 x $42.00 = 16,800.00
<u>13-Mar 200 x $27.00 = 5,400.00</u>
1,200 41.00 49,200.00
<u>Sales (800) x $41.00 = (32,800.00)</u>
Total 400 $41.00 16,400.00
21-Aug 100 x $50.00 = 5,000.00
<u>5-Sep 500 x $46.00 = 23,000.00</u>
Total 1,000 $44.40 44,400.00
<u>Sale (600) $44.40 (26,640.00)</u>
Balance 400 $44.40 17,760.00
4. computation of gross profit are as follows:
FIFO
SALE
15-Mar 800.00 75.00 60,000.00
<u>10-Sep 600.00 75.00 45,000.00</u>
1,400.00 105,000.00
COGS FIFO
Date Units Price Amount
1-Jan 600 45 27,000
10-Feb 200 42 8,400
10-Feb 200 42 8,400
13-Mar 200 27 5,400
21-Aug 100 50 5,000
<u>5-Sep 100 46 4,600 </u>
TOTAL 1,400 252 58,800
GROSS PROFIT $46,200 ($105,000 - $58,800)
LIFO
SALE
15-Mar 800 75.00 60,000.00
<u>10-Sep 600 75.00 45,000.00 </u>
TOTAL 1,400 105,000.00
COGS LIFO
Date Units Price Amount
1-Jan 200 45 9,000
10-Feb 200 42 8,400
10-Feb 200 42 8,400
13-Mar 200 27 5,400
21-Aug 100 50 5,000
<u>5-Sep 500 46 23,000</u>
1,400 59,200
GROSS PROFIT $45,800 (105,000 - 59,200)
SALE SPECIFIC
Date Units Price Amount
1 Jan 600 75 45,000
10-Feb 300 75 22,500
13-Mar 200 75 15,000
21-Aug 50 75 3,750
<u>5-Sep 250 75 18,750</u>
TOTAL 1,400 105,000
COGS SPECIFIC
Date Units Price Amount
01-Jan 600 45 27,000
10-Feb 300 42 12,600
13-Mar 200 27 5,400
21-Aug 50 50 2,500
<u>5-Sep 250 46 11,500 </u>
TOTAL 1,400 59,000
GROSS PROFIT $46,000 (105,000 - 59,000)
WEIGHTED AVERAGE
Date Units Price Amount
1-Jan 600 45.00 27,000.00
10-Feb 400 42.00 16,800.00
1<u>3-Mar 200 27.00 5,400.00 </u>
1,200 41.00 49,200.00
<u>Sale (800) 41.00 (32,800.00)</u>
Total 400 41.00 16,400.00
21-Aug 100 50.00 5,000.00
<u>5-Sep 500 46.00 23,000.00 </u>
Total 1,000 44.40 44,400.00
<u>Sales (600) 44.40 (26,640.00)</u>
Balance 400 44.40 17,760.00
Therefore, the computation of cost of goods sold is,
COST OF GOODS SOLD
15-Mar 800 41.00 32,800.00
<u>10-Sep 600 44.40 26,640.00 </u>
Total 1,400 59,440.00
SALE
15-Mar 800 75.00 60,000.00
<u>10-Sep 600 75.00 45,000.00</u>
Total 1,400 105,000.00
Gross profit $45,560.00 (105,000 - 59,440)
