ACC 321 Inventory Cost Flow Example

ACC 321 Inventory Cost Flow Example - INVENTORY EXAMPLE...

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INVENTORY EXAMPLE COST FLOW EXAMPLE Questions: What is COGS and EI under each Cost Flow Assumption? Date Purchases Sales Balance March 2 2,000 @ 4.00 2,000 March 15 6,000 @ 4.40 8,000 March 19 4,000 4,000 March 30 2,000 @ 4.75 6,000 Hint - FIND UNITS AND COST OF GOODS AVAILABLE FOR SALE UNITS= (2,000 + 6,000 + 2,000) = 10,000 COGAFS= (2,000 @ 4.00) + (6,000 @ 4.40) + (2,000 @ 4.75) = 43,900 SPECIFIC ID (note: we would need additional information) COGS = (1,000 @ 4.00) + (3,000 @ 4.40) = 17,200 EI = (1,000 @ 4.00) + (3,000 @ 4.40) + (2,000 @ 4.75) = 26,700 AVERAGE COST - Periodic Ave Cost Per Unit= (2,000 @ 4.00) + (6,000 @ 4.40) + (2,000 @ 4.75) / 10,000 = 4.39 per unit COGS = (4,000 @ 4.39) = 17,560 EI = (6000 @ 4.39) = 26,340 FIFO - Periodic COGS = (2,000 @ 4.00) + (2,000 @ 4.40) = 16,800 EI = (4,000 @ 4.40) + (2,000 @ 4.75) = 27,100 LIFO - Periodic COGS = (2,000 @ 4.75) + (2,000 @ 4.40) = 18,300 EI = (4,000 @ 4.40) + (2,000 @ 4.00) = 25,600
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AVERAGE COST - Perpetual (Moving Average) 1st Step:
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ACC 321 Inventory Cost Flow Example - INVENTORY EXAMPLE...

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