Question
Yang Corporation uses the periodic inventory system. The following sales and purchases of the same product were made during 20x1 at Yang Corporation. The opening
Yang Corporation uses the periodic inventory system. The following sales and purchases of the same product were made during 20x1 at Yang Corporation. The opening inventory consisted of 50 units at $2 each.
|
| Purchases |
| Sales | ||||
| Date | Units | $ per unit |
| Date | Units | Unit $Price | Total |
| March 15 | 200 | 3 |
| April 25 | 250* | 5 |
|
| June 15 | 600 | 5 |
| June 30 | 500** | 6 |
|
*for specific identification, sold 50 units of opening inventory and 200 units of March 15 purchase
**for specific identification, sold 500 units of June 15 purchase
Requirements:
1. Calculate cost of goods sold and the cost of ending inventory under FIFO, LIFO, specific identification, and weighted average inventory cost flow assumptions. Use the student template #1
2. Calculate and compare the effect on profit of the four inventory cost flow assumptions.
| ACT300 Principles of Accounting I | |||||||||||||
| Module 4: Critical Thinking Template Option #1 | |||||||||||||
| FIFO | Units | Cost per unit | Sale per Unit | Totals | |||||||||
| Beginning Inventory | - | $0.00 | $0.00 | $0 | |||||||||
| Purchases and Sales | |||||||||||||
| Mar 15-Purchase | - | $0.00 | $0.00 | $0 | Data from the problem | ||||||||
| April 25-Sale | - | $0.00 | $0.00 | 0 | The opening inventory consisted of 50 units at $2 each. | ||||||||
| Jun 15-Purchase | - | $0.00 | $0.00 | 0 | |||||||||
| Jun 30-Sale | - | $0.00 | $0.00 | 0 | Purchases | Sales | |||||||
| Cost of Goods Available for Sale | - | $0.00 | $0.00 | $0 | Date | Units | $ per unit | Date | Units | Unit $Price | |||
| Cost of Goods Sold (COGS) | - | $0.00 | $0.00 | 0 | 15-Mar | 200 | 3 | 25-Apr | 250* | 5 | |||
| Ending Inventory | - | $0.00 | $0.00 | $0 | 15-Jun | 600 | 5 | 30-Jun | 500** | 6 | |||
| COGS Calculation | Units | COGS | SalesTotals | Gross Profit | |||||||||
| Beginning Inventory | - | $0.00 | $0.00 | $0 | |||||||||
| Purchases - Mar 15 | - | $0.00 | $0.00 | $0 | |||||||||
| Sale - April 25 | - | $0.00 | $0.00 | $0 | |||||||||
| Purchases - June 15 | $0.00 | $0.00 | $0 | ||||||||||
| Sale - June 30 | $0.00 | $0.00 | $0 | ||||||||||
| . | . | ||||||||||||
| Totals | - | $0.00 | $0.00 | $0 | |||||||||
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