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Assignment Intermed Cost Flow Inventories Edited

1. The document provides inventory costing examples using FIFO, weighted average, and specific identification costing methods with multiple purchases and sales transactions. 2. Calculations are shown for determining beginning inventory, purchases, goods available for sale, ending inventory, and cost of goods sold under each method. 3. The problems illustrate the different unit costs and total costs that result from the varying cost flow assumptions between inventory costing methods.

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Min Yoongi
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84 views

Assignment Intermed Cost Flow Inventories Edited

1. The document provides inventory costing examples using FIFO, weighted average, and specific identification costing methods with multiple purchases and sales transactions. 2. Calculations are shown for determining beginning inventory, purchases, goods available for sale, ending inventory, and cost of goods sold under each method. 3. The problems illustrate the different unit costs and total costs that result from the varying cost flow assumptions between inventory costing methods.

Uploaded by

Min Yoongi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 17

PROBLEM 11-1

UNITS UNIT COST


Jan 1 Balance Sheet 6000 150
5 Purchase 2000 200
10 Sale 4000
15 Sale 1000
20 Purchase 2500 300
25 Purchase 2000 400
31 Sale 3000

FIFO Units Units Cost Total Cost


20-Jan Purchase 2500 300 750000
25-Jan Purchase 2000 400 800000
4500 1550000

WAV UNITS UNIT COSTS TOTAL COST


1-Jan Balance Sheet 6000 150 900000
5-Jan Purchase 2000 200 400000
20-Jan Purchase 2500 300 750000
25-Jan Purchase 2000 400 800000
12500 2850000

UNITS UNIT COST TOTAL COST


Beginning Balance 10000 80 800000
1 2000 100 200000
2 8000 110 880000
3 6000 120 720000
4 9500 100 950000
5 14500 90 1305000

FIFO
LOT UNIT UNIT COST TOTAL COST COGS
4 500 100 50000 BEG INV 800000
5 14500 90 1305000 PURCHASES 4055000
15000 1355000 GOODS AVAIL FOR DALE 4855000
END INV 1355000
COGS

WAV
LOT NO. UNITS UNIT COST TOTAL COST
Beginning Balance 10000 80 800000 COGS
1 2000 100 200000 Weighted avg cost 4855000/50000 =97.1
2 8000 110 880000 Inventory Cost 15000 x 97.1 = 1456500
3 6000 120 720000
4 9500 100 950000 BEG INV 800000
5 14500 90 1305000 PURCHASES 4055000
50000 4855000 GOODS AVAIL FOR SALE 4855000
END INV 1456500
COGS 3398500
SPECIFIC IDENTIFICATION
COGS
LOT 3 6000 120 720000 BEG INV 800000
4 9000 100 900000 PURCHASES 4055000
15000 1620000 GOODS AVAIL FOR SALE 4855000
END INV 1620000
COGS 3235000
PROBLEM 11-3
UNITS UNIT COST UNIT SELLING PRICE
1-Dec Beginning 10000 52
7-Dec Purchase 30000 50
12-Dec Sale 20000 90
17-Dec Purchase 60000 45
22-Dec Purchase 20000 43
28-Dec Sale 70000 90

FIFO
UNITS UNIT COST TOTAL COST COGS
17-Dec Purchase 10000 45 450000 BEG INV 520000
22-Dec Purchase 20000 43 860000 PURCHASES 5060000
30000 1310000 GOODS AVAIL FOR SALE 5580000
END INV -1310000
COGS 4270000

WEIGHTED AVG UNIT UNIT COST TOTAL COST COGS


1-Dec BEGINNING 10000 52 520000 Weighted avg. unit cost 5580000/120000 = 45.5
PURCHASES 30000 50 1500000 Inventory cost 30000 x 46.5 = 1395000
PURCHASES 60000 45 2700000
PURCHASES 20000 43 860000 BEG INV 520000
120000 5580000 PURCHASES 5060000
GOODS AVAIL FOR SALE 5580000
END INV -1395000
COGS 4185000

PROBLEM 11-4
FIFO
PURCHASES SALES
UNITS UNIT COST TOTAL COST UNIT UNIT COST TOTAL COST
1-Mar
6-Mar 3000 250 750000
9-Mar 1000 270 270000
1000 250 250000
14-Mar 6000 280 1680000
25-Mar 4000 210 840000

31-Mar 2000 250 500000


6000 280 1680000

MOVING AVERAGE
UNITS UNIT COST TOTAL COST
1-Mar BEGINNING 1000 270 270000
6-Mar PURCHASES 3000 250 750000 COGS: 510,000 + 2,020,000 = 2, 530, 000
4000 255 1020000
9-Mar SALES (2,000) 255 (510,000)
2000 255 510000
14-Mar PURCHASES 6000 280 1680000
8000 273.75 2190000
25-Mar PURCHASES 4000 210 840000
12000 252.5 3030000
31-Mar SALES (8,000) 252.5 (2,020,000)
4000 252.5 1010000
PROBLEM 11-6
FIFO PERIODIC UNIT UNIT COST
1-Oct PURCHASE 15000 60

WEIGHTED AVG UNIT UNIT COST


1-Jan BEGINNING 10000 40
1-Apr PURCHASE 15000 50
1-Oct PURCHASE 25000 60
50000

MOVING AVG UNIT UNIT COST


1-Jan BEG BAL 10000 40
31-Jan SALE (5,000) 40
5000 40
1-Apr PURCHASE 15000 50
20000 47.5
31-Jul SALE (18,000) 47.5
2000 47.5
1-Oct PURCHASE 25000 60
27000 59.07
31-Dec SALE (12,000) 59.07
15000 59.07

PROBLEM 11-7
FIFO
UNIT UNIT COST TOTAL COST
1-Oct 300 10000 3000000
300 3000000

WEIGHTED AVG UNIT UNIT COST


1-Jan BEG INV 200 7500
1-Apr PURCHASE 300 9000
1-Oct PURCHASE 500 10000
1000

55000/50000 =97.1
000 x 97.1 = 1456500
PROBLEM 11-8
FIFO
QUUANTITY UNIT COST TOTAL COST
1000 60 60000
25-Jan 14000 62 868000
15000 928000

80000/120000 = 45.5
000 x 46.5 = 1395000

BALANCE COGS
UNIT UNIT COST TOTAL COST BEG INV 270000
1000 270 270000 PURCHASES 3270000
3000 250 750000 GOODS AVAIL FOR SALE 3540000
END INV 840000
2000 250 500000 COGS 2700000
2000 250 500000
6000 280 1680000
2000 250 500000
6000 280 1680000
4000 210 840000

4000 210 840000

= 2, 530, 000
TOTAL COST
900000 COGS: 1750000

TOTAL COST COGS


400000 WEIGHTED AVG COST 2650000/50000 = 53
750000 INVENTORY COST: 15000 X 53 = 795000
1500000
2650000 BEG BAL 400000
PURCHASES 2250000
GOODS AVAIL FOR SALE 2650000
ENDING INV -795000
COGS 1855000
TOTAL COST
400000 COGS
(200,000) 200000 + 855000 + 708840 = 1763840
200000
750000
950000
(855,000)
95000
1500000
1595000
(708,840)
886160

COGS
BEG INV 1500000
PURCHASES 5270000
GOODS AVAIL FOR SALE 6770000
ENDING INV (3,000,000)
COGS 3770000

TOTAL COST COGS


1500000 WEIGHTED AVG COST: 9200000/1000 = 9200
2700000 INVENTORY COST: 9200 X 300 = 2760000
5000000 BEG BAL 1500000
9200000 PURCHASES 7700000
GOODS AVAIL FOR SALE 9200000
ENDING INV (2,760,000)
COGS 6440000

SALES 6000000
GROSS PROFITS 2400000
COGS 3600000
INV-JULY 31 928000
GOODS AVAIL FOR SALE 4528000
PURCHASES (3,174,000)
INV-JULY 1 1354000
PROBLEM 11-2
LOT NO. UNITS UNIT COSTTOTAL COST
Beginning 10000 80 800000
1 2000 100 200000
2 8000 110 880000
3 6000 120 720000
4 9500 100 950000
5 14500 90 1305000

FIFO
LOT UNIT UNIT COSTTOTAL COST COGS
4 500 100 50000 BEG INV 800000
5 14500 90 1305000 PURCHASE 4055000
15000 1355000 GOODS AVA4855000
END INV 1355000
COGS 3500000

WAV
LOT NO. UNITS UNIT COSTTOTAL COST
Beginning 10000 80 800000 COGS
1 2000 100 200000 Weighted a4855000/50000 =97.1
2 8000 110 880000 Inventory 15000 x 97.1 = 1456500
3 6000 120 720000
4 9500 100 950000 BEG INV 800000
5 14500 90 1305000 PURCHASE 4055000
50000 4855000 GOODS AVA4855000
END INV 1456500
COGS 3398500
SPECIFIC IDENTIFICATION
COGS
LOT 3 6000 120 720000 BEG INV 800000
4 9000 100 900000 PURCHASE 4055000
15000 1620000 GOODS AVA4855000
END INV 1620000
COGS 3235000
PURCHASES SALES INVENTORY INCREMENT
2018 5000 4000 1000
2019 9000 7000 2000
2020 15000 12000 3000
6000

2018 5000 4000 1000


2019 9000 7000 2000
3000

2020 PURCHASES 6000 * 75 = 450000


2019 PURCHASES 3000*60 = 180000

BEGINNING INV 2019 180000 SALES 1200000


PURCHASES 1125000 COGS (855,000)
GOODS AVAIL FOR SALE 1305000 GROSS PROFITS 345000
ENDING INV 450000
COGS (855,000)
1 UNITS AVG UNIT COST TOTAL COST
1-Mar PURCHASE 3800 135 513000
1-Sep PURCHASE 7200 140 1008000
11000 138 1518000

2 INV BEG 14000 1480000


PURCHASES 12000 1656000
MAT AVAIL 26000 3136000
INV END (11,000) (1,518,000)
RAW MAT USED 15000 1618000

3
10-Jan PURCHASE 2500 145 362500
10-May PURCHASE 5500 155 852500
29-Dec PURCHASE 7000 160 1120000
15000 2335000
15000 153 2295000

4
INV BEG 11000 1518000
PURCHASES 20000 3060000
MAT AVAIL 31000 4578000
INV END (15,000) (2,295,000)
RAW MAT USED 16000 2283000
GOODS AVAIL FOR SALE 42000
UNITS SOLD (2800000/100) (28,000)
ENDING INV 14000

FIFO UNITS UNIT COST TOTAL COST


5-Sep PURCHASE 2000 43 86000
25-Sep PURCHASE 12000 42 510000
14000 596000

WAV
AVG WEIGHTED COST1753500/42000 = 41.75
ENDING INV: 14000 * 41.75 = 584500

FIFO WAV
GOODS AVAIL FOR SALE 1753500 1753500
INV END (596,000) (584,500)
COGS 1157500 1169000

SCHEDULE 1: WAV
SCHEDULE 2: FIFO
FIFO
UNIT UNIT COST TOTAL COST
21-Jun 1500 330 495000
30-Jun 2500 313 782500
4000 1277500

WAV
UNIT UNIT COST TOTAL COST COST OF ENDING INVENTORY
1-Jun 3000 300 900000 4000 X 315 = 1260000
4-Jun 7500 304 2280000
8-Jun 4000 320 1280000
13-Jun 6000 325 1950000
21-Jun 3500 330 1155000
30-Jun 2500 313 782500
26500 315 8347500
FIFO COST OF ENDING INV
UNIT UNIT COST TOTAL COST
9-Jan 250 540 135000
29-Jan 500 600 300000
750 435000

WAV
1-Jan 500 500 250000 WEIGHTED AVG UNIT COST 544
9-Jan 1500 540 810000 INV COST: 750 X 544: 408000
29-Jan 500 600 300000
2500 1360000
COGS
INV JAN 250000
PURCHASES 1110000
GOODS AVAIL FOR SALE 1360000
ENDING INV (408,000)
COGS 952000
PURCHASE PRICE 26850000
IMPROVED AND SUBDIVIDED 43500000
70350000

GROUP SALES PRICE COST


1 (20 * 3000000) 60000000 60/150 40200000
2(10 * 2500000) 25000000 25/150 16750000
3 (10 * 2000000) 20000000 20/150 13400000
105000000 70350000

GROUP COST PER LOT UNSOLD COST


1 (40200000/20) 2010000 5 10050000
2 (16750000/10) 1675000 4 6700000
3 (13400000/10) 1340000 3 4020000
20770000
PURCHASED PRICE 18000000
INDEPENDENT APPRAISER 500000
DEVELOPMENT 41500000
60000000

SALES PRICES COST


HIGHLAND (1000000 * 20) 20000000 20/100 12000000
MIDLAND (750000 * 40) 30000000 30/100 18000000
LOWLAND (500000 * 100) 50000000 50/100 30000000
100000000 60000000

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