Inventories

# Inventories - beginning inventory purchases ending...

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Sheet1 Page 1 beginning inventory + purchases - ending inventory = cost of goods sold. \$2000 x 0.05 = \$100 beginning inventory: 2000 at the end of the month there were 4,500 pencils left. The total sales in the month was 16,000. The units sold in the month is 13,500 (beginning inventory + total - ending inventory) 2,000 x \$0.05 = 100 13,500 - 2,000 = 11,500. FIFO 5,000x \$0.04 + 6,000 x \$0.05 + 500 x \$0.05 = 200+300+25 = 525 CALCULATING COSTS OF GOODS SOLD: UNDER FIFO When we don the first amounts till we get the number of SOLD GOODS. 200 x \$5 + 500 x \$6 + 150 x \$5.5 = 1,000 + 3,000 +825= \$4825. GOOD JOB :)! WELL DONE!!! UNDER LIFO: We don't use the BEGINNING INVENTORY!!!!!!!!!!!!!!!! Exercise (walk me through the similar problem) for the year 2009: beginning inventory: 50 skis cost per unit: \$69 ending inventory: 800 HOw many skis did the company sell? 1,200 + 2,500 - 800 = 2,900 \$26,300 + 400x\$9 = \$29,900 SUPERB :)!!! WELL DONE!!! 1)NUMBER OF UNITS SOLD: BEG INV + TOTAl - END INV. LIFO: UNDER LIFO THE ENDING INVENTORY WOULD BE ASSUMED TO BE

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Sheet1 Page 2 THE FIRST UNITS PRUCHASED:)!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! AVERAGE COST OF THE PRODUCT: TOTAL COST OF THE PRODUCT/ TOTAL AMOUNT OF THE PRODUCT AVAILABLE Calculating THE ENDING INVENTORY:
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