FIFO and LIFO Homework - ACCOUNT244 Problem62A Spring2014 Problem62A(a Date Explanation Units March1 BeginningInventory 1,500 \$7.00 \$10,500 March5

# FIFO and LIFO Homework - ACCOUNT244 Problem62A Spring2014...

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ACCOUNT 244 Problem 6-2A Spring 2014 Problem 6-2A (a) COST OF GOODS AVAILABL E FOR SALE Date Explanation Units Unit Cost Total Cost March 1 Beginning Inventory 1,500 \$7.00 \$10,500 March 5 Purchase 3,500 \$8.00 28,000 March 13 Purchase 4,000 \$9.00 36,000 March 21 Purchase 2,000 \$10.00 20,000 March 26 Purchase 2,000 \$11.00 22,000 Total 13,000 \$116,500 (b) FIFO calculations Date Units Unit Cost Total Cost March 26 2,000 \$11.00 \$22,000 March 21 1,000 \$10.00 10,000 FIFO Ending Inventory -> 3,000 \$32,000 13,000 – 10,000 = 3,000 Cost of goods available for sale \$116,500 Less: Ending inventory (32,000)
FIFO Cost of Goods Sold \$84,500 PROOF OF FIFO C OST OF G OODS SOLD Date Units Unit Cost Total Cost March 1 Beginning Inventory 1,500 \$7.00 \$10,500 March 5 Purchase 3,500 \$8.00 28,000 March 13 Purchase 4,000 \$9.00 36,000 March 21 Purchase 1,000 \$10.00 10,000 Total 10,000 \$84,500 Page 1 of 3 rev. 3/4/14
ACCOUNT 244 Problem 6-2A Spring 2014 COST OF GOODS AVAILABL E FOR SALE Date Explanation Units Unit Cost Total Cost March 1 Beginning Inventory 1,500 \$7.00 \$10,500 March 5 Purchase 3,500 \$8.00 28,000 March 13 Purchase 4,000 \$9.00 36,000 March 21 Purchase 2,000 \$10.00 20,000 March 26 Purchase 2,000 \$11.00 22,000 Total 13,000 \$116,500