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3. (5 points) The following show the purchase-sales of a single item of inventory On August, 20×6. Using this information as a basis, complete perpetual inventory records valuing ending inventory and cost of sales using FIFO and LIFO control. Proof the calculations using inventory available less ending inventory to find cost of sales calculation for both methods. Use the following tables to complete the inventory valuation.
| date | purchased | sales | balance | unit cost |
| 8/01/20×6 | 3 | $20.00 | ||
| 8/07/20×6 | 6 | 9 | $25.00 | |
| 8/15/20×6 | 4 | 5 | ||
| 8/21/20×6 | 3 | 2 | ||
| 8/29/20×6 | 10 | 12 | $26.00 |
| date | purchase-recieved | issued-sales | blanace available
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Question & Answer: 3. (5 points) The following show the purchase-sales of a single item of inventory On August, 20×6. Using this information as a basis, complete perpetual i…..
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units x cost = total cost |
| 8/01/20×6 | bal. fwd | ||
| 8/07/20×6 | |||
| 8/15/20×6 | |||
| 8/21/20×6 | |||
| 8/30/20×6 | |||
| ending | purchases= | CS= | EI= |
FIFO Proof
Beginning Inventory + Purchases = inventory available – ending inventory = CS
$ + $ = $ – $ = $
Expert Answer
| Calculation of Ending Inventory: FIFO | ||||||||||||
| Date | Purchases | Sales | Balance | |||||||||
| Units | PU | Total Cost | Units | PU | Total Cost | Units | PU | Total Cost | ||||
| 8-01-20×6 | 3 | 20 | 60 | |||||||||
| 8-07-20×6 | 6 | 27.5 | 165 | 3 | 20 | 60 | ||||||
| 6 | 27.5 | 165 | (Balancing Figure) | |||||||||
| 225 | (25*9) | |||||||||||
| 8-15-20×6 | 3 | 20 | 60 | 5 | 27.5 | 137.5 | ||||||
| 1 | 27.5 | 27.5 | ||||||||||
| 8-21-20×6 | 3 | 27.5 | 82.5 | 2 | 27.5 | 55 | ||||||
| 8-29-20×6 | 10 | 25.7 | 257 | 2 | 27.5 | 55 | ||||||
| 10 | 25.7 | 257 | (Balancing Figure) | |||||||||
| 312 | (12*26) | |||||||||||
| Total | 19 | 482 | 7 | 170 | 12 | 312 | ||||||
| Proof | Beginning Inventory | Purchase | Inventory Available | Ending Inventory | CS | |||||||
| 60 | 422 | 482 | 170 | 312 | ||||||||
| Calculation of Ending Inventory: LIFO | ||||||||||||
| Date | Purchases | Sales | Balance | |||||||||
| Units | PU | Total Cost | Units | PU | Total Cost | Units | PU | Total Cost | ||||
| 8-01-20×6 | 3 | 20 | 60 | |||||||||
| 8-07-20×6 | 6 | 27.5 | 165 | 3 | 20 | 60 | ||||||
| 6 | 27.5 | 165 | (Balancing Figure) | |||||||||
| 225 | (25*9) | |||||||||||
| 8-15-20×6 | 4 | 27.5 | 110 | 3 | 20 | 60 | ||||||
| 2 | 27.5 | 55 | ||||||||||
| 8-21-20×6 | 3 | 20 | 60 | 2 | 27.5 | 55 | ||||||
| 8-29-20×6 | 10 | 25.7 | 257 | 2 | 27.5 | 55 | ||||||
| 10 | 25.7 | 257 | (Balancing Figure) | |||||||||
| 312 | (12*26) | |||||||||||
| Total | 19 | 482 | 7 | 170 | 12 | 312 | ||||||
| Proof | Beginning Inventory | Purchase | Inventory Available | Ending Inventory | CS | |||||||
| 60 | 422 | 482 | 170 | 312 | ||||||||
