FIFO - LIFO - Avg. Cost

FIFO - LIFO - Avg. Cost - Example using FIFO Inventory...

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Cost per Total Units Unit Cost Beginning Inventory 01/01/2007 3 $35.00 $105.00 these units go to C of GS Purchase 2 Units on 01/10/2007 2 $40.00 $80.00 1 unit goes to C of GS -- 1 unit is left in inventory Purchase 1 Unit on 01/15/2007 1 $55.00 $55.00 this unit is left in inventory Goods Available for Sale 6 $240.00 Ending Inventory 01/31/2007 (2) ($95.00) (1 x $55) + (1 x $40) Cost of Goods Sold for January 4 $145.00 Income Statement for January 1, 2007 to January 31, 2007 $400.00 Cost of Goods Sold (145.00) Gross Margin 255.00 (20.00) Pre-Tax Income 235.00 Income Taxes (at 15% rate) (35.25) Net Income $199.75 Cost per Total Units Unit Cost Beginning Inventory 01/01/2007 3 $35.00 $105.00 1 unit goes to C of GS -- 2 units are left in inventory Purchase 2 Units on 01/10/2007 2 $40.00 $80.00 these units go to C of GS Purchase 1 Unit on 01/15/2007 1 $55.00 $55.00 this unit goes to C of GS Goods Available for Sale 6 $240.00 Ending Inventory 01/31/2007 (2) ($70.00) (2 x $35)
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