Read the m be repoited in ending merchandse inventory on Jan

Read the m be repoited in ending merchandse inventory on January 15 using the FIFO inventory costing method al lag n wiw calculate the quantity and total cost o merchandise we to tory on h d balances after each transaction Once all of the transactions have been entered into the perpetual record ?6x Unit TotalMore into UnitTotal Quenity Cost Cost Quantity Cost Cost Quantity Cost Cost 8 Sold 7 gallons of milk to a customer 13 Purchased 3 gallons $3.00 each 14 Sold 4 gallons of milk to a customer

Solution

1 Under FIFO method,Goods purchased first are sold first. Purchases Cost of goods sold Inventory on hand Date Quantity Unit cost Total cost Quantity Unit cost Total cost Quantity Unit cost Total cost Jan 2. 12 2.25 27 12 2.25 27 6 6 2.4 14.4 12 2.25 27 6 2.4 14.4 8 7 2.25 15.75 5 2.25 11.25 6 2.4 14.4 13 3 3 9 5 2.25 11.25 6 2.4 14.4 3 3 9 14 4 2.25 9 1 2.25 2.25 6 2.4 14.4 3 3 9 Inventory on hand=2.25+14.4+9=$25.65 2 Under LIFO method,Goods purchased last are sold first. Purchases Cost of goods sold Inventory on hand Date Quantity Unit cost Total cost Quantity Unit cost Total cost Quantity Unit cost Total cost Jan 2. 12 2.25 27 12 2.25 27 6 6 2.4 14.4 12 2.25 27 6 2.4 14.4 8 6 2.4 14.4 11 2.25 24.75 1 2.25 2.25 13 3 3 9 11 2.25 24.75 3 3 9 14 3 3 9 10 2.25 22.5 1 2.25 2.25 Inventory on hand=$22.50 3 Under weighted average inventory method,Inventory is valued at weighted average cost per unit Weighted average cost per unit=Total cost/Total quantity Purchases Cost of goods sold Inventory on hand Date Quantity Unit cost Total cost Quantity Unit cost Total cost Quantity Unit cost Total cost Jan 2. 12 2.25 27 12 2.25 27 6 6 2.4 14.4 18 2.3 41.4 (27+14.4)/18 8 7 2.3 16.1 11 2.3 25.3 13 3 3 9 14 2.45 34.3 (25.3+9)/14 14 4 2.45 9.8 10 2.45 24.5 Inventory on hand=$24.50