Question
Moving Average, FIFO, LIFO. Arthur Lloyd Associates provided the following information regarding its inventory for the current year, its second year of operations. Transaction Units
Moving Average, FIFO, LIFO. Arthur Lloyd Associates provided the following information regarding its inventory for the current year, its second year of operations.
Transaction | Units | Sales in Units | Unit Cost | Total Cost |
---|---|---|---|---|
Beginning inventory 1/1 | 10,000 | $18 | $ 180,000 | |
Purchases | ||||
February 8 | 23,000 | 20 | 460,000 | |
March 15 | 18,600 | 22 | 409,200 | |
Subtotal | 51,600 | $1,049,200 | ||
Units SoldApril 2 at $41 | 49,500 | |||
April 30 | 37,000 | 28 | 1,036,000 | |
July 15 | 12,400 | 31 | 384,400 | |
Subtotal | 101,000 | $2,469,600 | ||
Units SoldSeptember 1 at $47 | 26,000 | |||
November 9 | 34,500 | 29 | 1,000,500 | |
Total available for sale | 135,500 | $3,470,100 | ||
Total units sold | (75,500) | |||
Ending inventory | 60,000 |
Required
Compute Arthur Lloyd's ending inventory and cost of goods sold under each of the following cost-flow methods assuming the company uses a perpetual inventory system (round your answer for cost per unit to two decimal places):
a. Moving Average
In Excel Format
Transaction Unit Purchased Unit Cost Cumulative Units Cost Cumulative Cost Average Cost Per Unit
b. FIFO
In Excel Format
Transaction Unit Purchased Unit Cost Total Cost Units Sold Cost of Good Sold Per Unit Cost of Goods Sold
c. LIFO
In Excel Format
Transaction Unit Purchased Unit Cost Total Cost Units Sold Cost of Good Sold Per Unit Cost of Goods Sold
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started