Specific Identification FIFO LIFO and WeightedAverage Swing

Specific Identification, FIFO, LIFO, and Weighted-Average

Swing Company\'s beginning inventory and purchases during the fiscal year ended September 30, 20-2, were as follows:

Use the following information for the specific identification method.

There are 1,300 units of inventory on hand on September 30, 20-2. Of these 1,300 units:

Required:

Calculate the total amount to be assigned to cost of goods sold for the fiscal year ended September 30, 20-2, and ending inventory on September 30, 20-2, under each of the following periodic inventory methods. For the weighted-average method, round the average unit cost to two decimal places. Round all final answers to the nearest dollar.

		Units	Unit Price	Total Cost
October 1, 20-1	Beginning inventory	390	$20.5		$7,995
October 18	1st purchase	490	21		10,290
November 25	2nd purchase	220	22		4,840
January 12, 20-2	3rd purchase	300	23.5		7,050
March 17	4th purchase	910	25		22,750
June 2	5th purchase	810	25.5		20,655
August 21	6th purchase	200	26		5,200
September 27	7th purchase	690	27		18,630
		4,010			$97,410

Solution

Specific Identification Inventory Method COST OF GOODS SOLD COST OF ENDING INVENTORY Units Unit Price Total Units Unit Price Total Beginning inventory 390 $20.50 $7,995 0 $20.50 $0 1st purchase 390        21.00 $8,190 100        21.00 $2,100 2nd purchase 220        22.00 $4,840 0        22.00 $0 3rd purchase 100        23.50 $2,350 200        23.50 $4,700 4th purchase 810        25.00 $20,250 100        25.00 $2,500 5th purchase 410        25.50 $10,455 400        25.50 $10,200 6th purchase 0        26.00 $0 200        26.00 $5,200 7th purchase 390        27.00 $10,530 300        27.00 $8,100 Total 2710 $64,610 1300 $32,800 Alternative calculation if given Cost of goods available for sale $97,410 Cost of goods available for sale $97,410 goods available for sale and cost Less cost of ending inventory -32,800 Less cost of goods sold -64,610 of goods sold or ending inventory. Cost of goods sold $64,610 Cost of ending inventory $32,800 FIFO Inventory Method COST OF GOODS SOLD COST OF ENDING INVENTORY Units Unit Price Total Units Unit Price Total Beginning inventory 390 $20.50 $7,995 0 $20.50 $0 1st purchase 490        21.00 $10,290 0        21.00 $0 2nd purchase 220        22.00 $4,840 0        22.00 $0 3rd purchase 300        23.50 $7,050 0        23.50 $0 4th purchase 910        25.00 $22,750 0        25.00 $0 5th purchase 400        25.50 $10,200 410        25.50 $10,455 6th purchase 0        26.00 $0 200        26.00 $5,200 7th purchase 0        27.00 $0 690        27.00 $18,630 Total 2710 $63,125 1300 $34,285 Alternative calculation if given Cost of goods available for sale $97,410 Cost of goods available for sale $97,410 goods available for sale and cost Less cost of ending inventory -34,285 Less cost of goods sold -63,125 of goods sold or ending inventory. Cost of goods sold $63,125 Cost of ending inventory $34,285 LIFO Inventory Method COST OF GOODS SOLD COST OF ENDING INVENTORY Units Unit Price Total Units Unit Price Total Beginning inventory 0 $20.50 $0 390 $20.50 $7,995 1st purchase 0        21.00 $0 490        21.00 $10,290 2nd purchase 0        22.00 $0 220        22.00 $4,840 3rd purchase 100        23.50 $2,350 200        23.50 $4,700 4th purchase 910        25.00 $22,750 0        25.00 $0 5th purchase 810        25.50 $20,655 0        25.50 $0 6th purchase 200        26.00 $5,200 0        26.00 $0 7th purchase 690        27.00 $18,630 0        27.00 $0 Total 2710 $69,585 1300 $27,825 Alternative calculation if given Cost of goods available for sale $97,410 Cost of goods available for sale $97,410 goods available for sale and cost Less cost of ending inventory -27,825 Less cost of goods sold -69,585 of goods sold or ending inventory. Cost of goods sold $69,585 Cost of ending inventory $27,825 Weighted-Average Method $97,410 (cost of units available for sale) ÷ 4010 (units available for sale) = $24.29 weighted-average cost per unit The cost of goods sold and the cost of the end-of-period inventory are calculated as follows: Cost of goods sold = 2710 units @ $24.29 = $ 65,830 rounded to upper 10th Cost of ending inventory = 1300 units @ $24.29 =     31,580 rounded to upper 10th Total 4010 units                     =   $97,410 Cost of Goods Sold Cost of Ending Inventory 1. FIFO $                        63,125 $       34,285 2. LIFO $                        69,585 $       27,825 3. Weighted-average $                        65,830 $       31,580 4. Specific identification $                        64,610 $       32,800