Question 2 Date Explanation Units Unit Cost Total Cost LINK

Question 2

Date

Explanation

Units

Unit Cost

Total Cost

LINK TO TEXT

LINK TO TEXT

FIFO

LIFO

Moving-Average Cost

Question 2 Moath Company reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 352 $6 $2,112 12 Purchase 704 7 4,928 23 Purchase 528 8 4,224 30 Inventory 176 Assume a sale of 774 units occurred on June 15 for a selling price of $9 and a sale of 634 units on June 27 for $10.

Solution

CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER FIFO METHOD PURHASES COST OF GOODS SOLD CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost June , 01 Beginning inventory 352 $6 $2,112 352 $6 $2,112 June , 12 Purchases 704 $7 $4,928 704 $7 $4,928 June , 15 Sales 352 $6 $2,112 422 $7 $2,954 282 $7 $1,974 June , 23 Purchases 528 $8 $4,224 282 $7 $1,974 528 $8 $4,224 June , 27 Sales 282 $7 $1,974 352 $8 $2,816 176 $8 $1,408 June , 30 Closing inventory 176 $8 $1,408 1232 9152 1408 9856 176 $1,408 Unit Amount COGS as per FIFO Method                   1,408.00 $9,856.00 Ending inventory 176 1408 CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER LIFO METHOD PURHASES COST OF GOODS SOLD CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost June , 01 Beginning inventory 352 $6 $2,112 352 $6 $2,112 June , 12 Purchases 704 $7 $4,928 704 $7 $4,928 June , 15 Sales 704 $7 $4,928 70 $6 $420 282 $6 $1,692 June , 23 Purchases 528 $8 $4,224 282 $6 $1,692 528 $8 $4,224 June , 27 Sales 528 $8 $4,224 106 $6 $636 176 $6 $1,056 June , 30 Closing inventory 176 $6 $1,056 1232 9152 1408 10208 176 $1,056 Unit Amount COGS as per LIFO Method                   1,408.00 $10,208.00 Ending inventory 176 $1,056 CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER MOVING AVERAGE Unit Rate Amount Moving Avarage Beginning inventory 352 $6.00                               2,112 $6.00 Purchase June 12 704 $7.00                               4,928 $6.67 Sales as on June 15 (A) 774 $6.67                               5,160 Balance as on june 15 282 $6.67                               1,880 $6.67 Purchase June 23 528 $8.00                               4,224 $7.54 Sales as on June 27 (B)                             634 $7.54                               4,778 $7.54 Balance as on june 30                             176 $7.54                               1,326 $7.54 Cost of Goods Sold (A +B)                         1,408                               9,938 Ending inventory Cost of Goods Sold a) FIFO $1,408 $9,856 b) LIFO $1,056 $10,208 c) Moving - Average $1,326 $9,938