At the end of January 2014 the records of Donner Company sho

At the end of January 2014, the records of Donner Company showed the following for a particular item that sold at $17.40 per unit: Transactions Units Amount 620 $3,255 600 150 1,350 (480) (200) Inventory, January 1, 2014 Purchase, January 12 4,200 Purchase, January 26 Sale Sale value: 4.37 points Required 1a. Compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. (Round unit price to 2 decimal places. Input all amounts as positive values.) age Cost Cost of Good Available for Sale Cost of Goods Sold Cost of Goods Unit Available Sold for Sale Cost of Goods Sold # of Units | Cost per | # of Units Cost per Unit Beginning inventory Purchases January 12 January 26 Total FIFO Cost of Goods Available for Sale Cost of Goods Sold Cost of Goods Available for Sale Cost of Goods Sold Cost per Unit Cost per Unit # of Units | | # of Units iSold Beginning inventory Purchases January 12 January 26 Total LIFO Cost of Goods Available for Sale Cost of Goods Sold Cost of Goods Available for Sale Cost of Goods Sold Cost per Unit | # of Units Sold Cost per Unit # of Units | Beginning inventory January 12 January 26 Total

Solution

Solution:

Part 1a – Cost of Goods Sold

Average Cost

Cost of Goods Available for Sale

Cost of Goods Sold

# of units

Cost per unit

Cost of Goods Available for sale

# of units

Cost per unit

Cost of goods sold

Beginning Inventory

620

$3.255

$2,018.10

Purchases:

Jan 12

600

$4.200

$2,520.00

Jan 26

150

$1.350

$202.50

Total

1370

$3.460

$4,740.60

$680.000

$3

$2,352.80

FIFO

Cost of Goods Available for Sale

Cost of Goods Sold

# of units

Cost per unit

Cost of Goods Available for sale

# of units

Cost per unit

Cost of goods sold

Beginning Inventory

620

$3.255

$2,018.10

620

$3.255

$2,018.10

Purchases:

Jan 12

600

$4.200

$2,520.00

60

$4.200

$252.00

Jan 26

150

$1.350

$202.50

Total

1370

$4,740.60

680

$2,270.10

LIFO

Cost of Goods Available for Sale

Cost of Goods Sold

# of units

Cost per unit

Cost of Goods Available for sale

# of units

Cost per unit

Cost of goods sold

Beginning Inventory

620

$3.255

$2,018.10

Purchases:

Jan 12

600

$4.200

$2,520.00

530

$4.20000

$2,226.00

Jan 26

150

$1.350

$202.50

150

$1.35000

$202.50

Total

1370

$4,740.60

680

$2,428.50

Specific Identification

Cost of Goods Available for Sale

Cost of Goods Sold

# of units

Cost per unit

Cost of Goods Available for sale

# of units

Cost per unit

Cost of goods sold

Beginning Inventory

620

$3.255

$2,018.10

620

$3.255

$2,018.10

Purchases:

Jan 12

600

$4.200

$2,520.00

60

$4.200

$252.00

Jan 26

150

$1.350

$202.50

Total

1370

$4,740.60

680

$2,270.10

1b – Partial Income Statement

Partial Income Statement

For the Month Ended January 31, 2014

(a)

(b)

( c)

(d)

Avg Cost

FIFO

LIFO

Specific Identification

Sales Revenue (680 Units *$17.4)

$11,832.00

$11,832.00

$11,832.00

$11,832.00

Cost of Goods Sold (refer Part 1a)

$2,352.80

$2,270.10

$2,428.50

$2,270.10

Gross Profit

$9,479.20

$9,561.90

$9,403.50

$9,561.90

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ALTERNATIVELY...

Assumed the given amount is total amount of the inventory and units purchased..

Average Cost

Cost of Goods Available for Sale

Cost of Goods Sold

# of units

Cost per unit

Cost of Goods Available for sale

# of units

Cost per unit

Cost of goods sold

Beginning Inventory

620

$5.25

$3,255

Purchases:

Jan 12

600

$7.00

$4,200

Jan 26

150

$9.00

$1,350

Total

1370

$6.43

$8,805

680

$6.43

$4,372.40

FIFO

Cost of Goods Available for Sale

Cost of Goods Sold

# of units

Cost per unit

Cost of Goods Available for sale

# of units

Cost per unit

Cost of goods sold

Beginning Inventory

620

$5.25

$3,255

620

$5.25

$3,255.00

Purchases:

Jan 12

600

$7.00

$4,200

60

$7.00

$420.00

Jan 26

150

$9.00

$1,350

Total

1370

$8,805

680

$3,675

LIFO

Cost of Goods Available for Sale

Cost of Goods Sold

# of units

Cost per unit

Cost of Goods Available for sale

# of units

Cost per unit

Cost of goods sold

Beginning Inventory

620

$5.25

$3,255

Purchases:

Jan 12

600

$7.00

$4,200

530

$7.00

$3,710

Jan 26

150

$9.00

$1,350

150

$9.00

$1,350

Total

1370

$8,805

680

$5,060

Specific Identification

Cost of Goods Available for Sale

Cost of Goods Sold

# of units

Cost per unit

Cost of Goods Available for sale

# of units

Cost per unit

Cost of goods sold

Beginning Inventory

620

$5.25

$3,255

620

$5.25

$3,255

Purchases:

Jan 12

600

$7.00

$4,200

60

$7.00

$420

Jan 26

150

$9.00

$1,350

Total

1370

$8,805

680

$3,675

Partial Income Statement

For the Month Ended January 31, 2014

(a)

(b)

( c)

(d)

Avg Cost

FIFO

LIFO

Specific Identification

Sales Revenue (680 Units *$17.4)

$11,832.00

$11,832.00

$11,832.00

$11,832.00

Cost of Goods Sold (refer Part 1a)

$4,372.40

$3,675.00

$5,060.00

$3,675.00

Gross Profit

$7,459.60

$8,157.00

$6,772.00

$8,157.00

Average Cost	Cost of Goods Available for Sale	Cost of Goods Sold
# of units	Cost per unit	Cost of Goods Available for sale	# of units	Cost per unit	Cost of goods sold
Beginning Inventory	620	$3.255	$2,018.10
Purchases:
Jan 12	600	$4.200	$2,520.00
Jan 26	150	$1.350	$202.50
Total	1370	$3.460	$4,740.60	$680.000	$3	$2,352.80
FIFO	Cost of Goods Available for Sale	Cost of Goods Sold
# of units	Cost per unit	Cost of Goods Available for sale	# of units	Cost per unit	Cost of goods sold
Beginning Inventory	620	$3.255	$2,018.10	620	$3.255	$2,018.10
Purchases:
Jan 12	600	$4.200	$2,520.00	60	$4.200	$252.00
Jan 26	150	$1.350	$202.50
Total	1370		$4,740.60	680		$2,270.10
LIFO	Cost of Goods Available for Sale	Cost of Goods Sold
# of units	Cost per unit	Cost of Goods Available for sale	# of units	Cost per unit	Cost of goods sold
Beginning Inventory	620	$3.255	$2,018.10
Purchases:
Jan 12	600	$4.200	$2,520.00	530	$4.20000	$2,226.00
Jan 26	150	$1.350	$202.50	150	$1.35000	$202.50
Total	1370		$4,740.60	680		$2,428.50
Specific Identification	Cost of Goods Available for Sale	Cost of Goods Sold
# of units	Cost per unit	Cost of Goods Available for sale	# of units	Cost per unit	Cost of goods sold
Beginning Inventory	620	$3.255	$2,018.10	620	$3.255	$2,018.10
Purchases:
Jan 12	600	$4.200	$2,520.00	60	$4.200	$252.00
Jan 26	150	$1.350	$202.50
Total	1370		$4,740.60	680		$2,270.10