1. Beginning Inventory 2. Purchase 3. Purchase 4. Sale on Account 5. Cash Sale SHOE INVENTORY FINAL FIFO & LIFO & WA 4,000 pairs @ $20 each 4,000 pairs @ $25 each 4,000 pairs @ $30 each 2,000 pairs @ $100 each 4,000 pairs @$100 each GROSS PROFIT FIFO LIFO WA Sales 400,000 $ 400,000 $ 400,000 Less Cogs 40,000 $ 60,000 $ 50,000 Gross Profit S 360,000 S 340,000 $ 350,000 - Be wa T-ACCOUNTS SALES DEBIT CREDIT COGS FIFO DEBIT CREDIT COGS LIFO DEBIT CREDIT 1) FIFO method Date Goods Purchases Unit Cost Cost of good sold Units Unit Cost Total Units Total Inventory Balance Units Unit Cost Total 4000 $ 20.00 S 80,000 Opening Purchase 4000 $ 25.00 $ 100,000.00 20.00$ 80,000 25.00 $ 100,000 Purchase 4000 $ 30.00 $ 120,000.00 4000 $ 4000 $ 8000 4000 $ 4000 $ 4000 $ 12000 20.00 25.00 30.00 $ $ $ 80,000 100,000 120,000 Sale 2000 $ 20.00 $ 40,000 2000 $ 4000 $ 4000 $ 10000 20.00 25.00 30.00 $ 40,000 $ 100,000 $ 120,000 $ 260,000 Cost of good sold $ 40,000 Ending inventory $ 260,000 Total Purchases $ 220,000.00 Add: Opening inventory $ 80,000.00 Cost of goods available for sale $ 300,000.00 2. LIFO Goods Purchases Date Units Unit Cost Total Opening Cost of good Sold Units Total Unit Cost 1 inventory Balance Units Unit Cost Total 4 000 $ 20.00 $ 80,000 Purchase 4000 $ 25.00 $ 100,000.00 20.00 25.00 $ $ 80,000 100,000 Purchase 4000 $ 30.00 $ 120,000.00 4000 $ 4000 $ 8000 4000 $ 4000 $ 4000 $ 12000 20.00 25.00 30.00 $ $ $ 80,000 100,000 120,000 Sale 2000 $ 30.00 $ 60,000 4000 $ 4000 $ 2000 $ 10000 20.00 25.00 30.00 $ 80,000 $ 100,000 $ 60,000 $ 240,000 Cost of good sold $ 60,000 Ending inventory $ 240,000 Total Purchases Add: Opening inventory Cost of goods available for sale $ 220,000.00 $ 80,000.00 $ 300,000.00