Ending Inventory and COGS calculations

Anonymous

Question Description

I need help with this document... it must be 1-2 pages of original work...

Calculate ending inventory and cost of goods sold using the last in, first out (LIFO); moving; and weighted average methods.

Tony Merchandise Company has the following information for the month of February:

Feb. 2

Beginning inventory

20

units

@

$12

per unit

Feb. 5

Purchase

20

units

@

$16

per unit

Feb. 8

Sale

12

units

Feb. 21

Purchase

12

units

@

$18

per unit

Feb. 25

Sale

14

units

Answer the following questions for Tony Merchandise Company:

  1. Calculate the dollar ending inventory if first in, first out (FIFO) is used.
  2. Calculate the cost of goods sold if LIFO is used.
  3. Calculate the dollar ending inventory if weighted average is used.
  4. According to the generally accepted accounting principles (GAAP), discuss the objectives of inventory costing.
  5. Discuss the consequences of selecting one method instead of others.

Tutor Answer

Xaib
School: University of Maryland

Attached.

1

Running Head: ENDING INVENTORY AND COGS

Ending Inventory and COGS
Student Name:
Course/Number:
Due Date:
Faculty Name:

2

Ending Inventory and COGS
Question No # 1
The cost of ending inventory is calculated using FIFO costing method.
Calculating the ending inventory

Date

Transaction

Units

Unit cost

Feb-02
Feb-05
Feb-08
Feb-08

Beginning
Purchase

20
20

12
16

Balance

Feb-21
Feb-25

Purchase

8
20
12

12
16
18

Feb-25

1st purchase
2nd purchase
Ending Inventory

14
12
26

Transaction

Unit

Unit cost

Total cost

Sale

12

12

144

Sale from beg

8

12

96

Sale from 1st purchase

6

16

96

16
18
440

Question No # 2
The cost of goods sold is calculated using Last in First out (LIFO) costing method.

Cost of goods sold if LIFO is used

Date

Transaction

Units

Unit cost

Feb-02
Feb-05
Feb-08
Feb-08

Beginning
Purchase

20
20

12
16

Feb-21
Feb-25

Purchase

Balance

20
8
12

Transaction

Unit

Unit cost

Total cost

Sale

12

16

192

Sale from 2nd pur
Sale from 1st purchase

12
2

18
16

216
32

12
16
18

Cost of Goods Sold

440

3

Ending Inventory and COGS
Question No # 3
The cost of ending inventory is calculated by using weighted average costing method.

Calculate the doll...

flag Report DMCA
Review

Anonymous
Good stuff. Would use again.

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors