Greehey Enterprises markets the CDs for the performing artist Cara Lotta. At the beginning of March,

Greehey had beginning inventory of 1,500 Lotta CDs with a unit cost of $7.

During March, Greehey made the following purchases of Lotta CDs.

Date:

Quantity:

Cost:

Date:

Quantity:

Cost:

Mar 5

3,000

$8

Mar 21

4,000

$10

Mar 13

5,500

$9

Mar 26

2,000

$11

During March, 12,500 units were sold. Greehey uses a perpetual inventory system.

Prepare answers on an Excel spreadsheet using the following templates.

Label each answer with the letter in parenthesis. Turn in hard copy of spreadsheet with 2nd copy (ctrl ~).

Instructions:

(a) Determine the cost of goods available for sale.

COST OF GOODS AVAILABLE FOR SALE

Date

Explanation

Units

Unit Cost

Total Cost

Mar 1

Text

Number

Value

Formula

Mar 5

Text

Number

Value

Formula

Mar 13

Text

Number

Value

Formula

Mar 21

Text

Number

Value

Formula

Mar 26

Text

Number

Value

Formula

Total

Formula

Formula

(b) Determine the ending inventory under FIFO. (c) Determine the COGS under FIFO.

FIFO

Ending Inventory

(2)

Cost of Goods Sold

Date

Units

Unit Cost

Total Cost

Title

Amount

Mar 26

Quantity

Amount

Formula

Title

Amount

Mar 21

Quantity

Amount

Formula

Title

Formula

Formula

Formula

(d) Prove the accuracy of the cost of goods sold under FIFO.

Proof of Cost of Goods Sold

Date

Units

Unit Cost

Total Cost

Mar 1

Quantity

Amount

Formula

Mar 5

Quantity

Amount

Formula

Mar 13

Quantity

Amount

Formula

Mar 21

Quantity

Amount

Formula

Formula

Formula

(e) Determine the ending inventory under LIFO. (f) Determine the COGS under LIFO.

LIFO

Ending Inventory

Cost of Goods Sold

Date

Units

Unit Cost

Total Cost

Title

Amount

Mar 1

Quantity

Amount

Formula

Title

Amount

Mar 5

Quantity

Amount

Formula

Title

Formula

Formula

Formula

(g) Prove the accuracy of the cost of goods sold under LIFO.

Date

Units

Unit Cost

Total Cost

Mar 26

Quantity

Amount

Formula

Mar 21

Quantity

Amount

Formula

Mar 13

Quantity

Amount

Formula

Mar 5

Quantity

Amount

Formula

Formula

Formula

(h) Determine the ending inventory under weighted average.

(1)

Ending Inventory

(2)

Cost of Goods Sold

Cost of goods available for sale

Avg. cost per unit =

Less: Ending inventory

Cost of goods sold