Solution to Examples

FIFO Periodic

Units Available for Sale = 68 + 140 + 40 + 78 = 326

Units Sold = 94 + 116 + 62 = 272
Units in Ending Inventory = 326 − 272 = 54
Cost of Goods Sold Units Unit Cost Total
Sales From Mar 1 Inventory 68 $15.00 $1,020
Sales From Mar 5 Purchase 140 $15.50 $2,170
Sales From Mar 11 Purchase 40 $16.00 $640
Sales From Mar 16 Purchase 24 $16.50 $396
272 $4,226
Ending Inventory Units Unit Cost Total
Inventory From Mar 16 54 $16.50 $891
Purchase

FIFO Perpetual

Date Purchases Sales Balance

Unit Unit Total Unit Unit Total Unit Unit Total
s Cost s Cost s Cost
Mar 68 $15.00 $1,020
1
5 140 $15.50 $2,170 68 $15.00 $1,020
140 $15.50 $2,170
9 68 $15.00 $1,020 114 $15.50 $1,767
26 $15.50 $403
11 40 $16.00 $640 114 $15.50 $1,767
40 $16.00 $640
16 78 $16.50 $1,287 114 $15.50 $1,767
40 $16.00 $640
78 $16.50 $1,287
20 114 $15.50 $1,767 38 $16.00 $608
2 $16.00 $32 78 $16.50 $1,287
29 38 $16.00 $608 54 $16.50 $891
24 $16.50 $396

Use LIFO on the following information to calculate the value of ending inventory and
the cost of goods sold of March.

Mar 1 Beginning Inventory 60 units @ $15.00

5 Purchase 140 units @ $15.50
14 Sale 190 units @ $19.00
27 Purchase 70 units @ $16.00
29 Sale 30 units @ $19.50

Solution
LIFO Periodic

Units Available for Sale = 60 + 140 + 70 = 270

Units Sold = 190 + 30 = 220
Units in Ending Inventory = 270 − 220 = 50
Cost of Goods Sold Units Unit Cost Total
Sales From Mar 27 Inventory 70 $16.00 $1,120
Sales From Mar 5 Purchase 140 $15.50 $2,170
Sales From Mar 1 Purchase 10 $15.00 $150
220 $3440
Ending Inventory Units Unit Cost Total
Inventory From Mar 27 50 $15.00 $750
Purchase

LIFO Perpetual

Date Purchases Sales Balance

Unit Unit Total Unit Unit Total Unit Unit Total
s Cost s Cost s Cost
Mar 60 $15.00 $900
1
5 140 $15.50 $2,170 60 $15.00 $900
140 $15.50 $2,170
14 140 $15.50 $2,170 10 $15.00 $150
50 $15.00 $750
27 70 $16.00 $1,190 10 $15.00 $150
70 $16.00 $1,120
29 30 $16.00 $480 10 $15.00 $150
40 $16.00 $640
31 10 $15.00 $150
40 $16.00 $640

AVCO Periodic

Units Available for Sale = 60 + 140 + 70 = 270

Units Sold = 190 + 30 = 220
Units in Ending Inventory = 270 − 220 = 50
Weighted Average Unit Cost Units Unit Cost Total
Mar 1 Inventory 60 $15.00 $900
Mar 5 Purchase 140 $15.50 $2,170
27 Purchase 70 $16.00 $1,120
270 * $15.52 $4,190
* $4,190 ÷ 270
Cost of Goods Sold 220 $15.52 $3,414
Ending Inventory 50 $15.52 $776

AVCO Perpetual

Date Purchases Sales Balance

Unit Unit Total Unit Unit Total Unit Unit Total
s Cost s Cost s Cost
Mar 60 $15.00 $900
1
5 140 $15.50 $2,170 60 $15.00 $900
140 $15.50 $2,170
200 $15.35 $3,070
14 190 $15.35 $2,916 10 $15.35 $154
27 70 $16.00 $1,120 10 $15.35 $154
70 $16.00 $1,120
80 $15.92 $1,274
29 30 $15.92 $478 50 $15.92 $796
31 50 $15.92 $796