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Problem -From the following transactions calculate the cost of closing inventory and cost of goods sold by applying FIFO method under perpetual and periodic inventory systems respectively: Date 1 July 2019 Transactions Opening balance brought forward Units 2000 Price Per Unit (3) 10 15 July 2019 Purchases 1000 15 11 31 July 2019 Purchases 800 1 August 2019 Sales 2400 15 August 2019 Sales 1000 16 August 2019 Purchases 800 30 August 2019 Sales 1000 15 Solution:?
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Problem -From the following transactions calculate the cost of closing...
FIFO Method Calculation for Closing Inventory and Cost of Goods Sold
Perpetual Inventory System
Opening Balance: 2000 units @ $10 = $20,000
Purchases:
- 15 July: 1000 units @ $15 = $15,000
- 31 July: 800 units @ $11 = $8,800
Total Cost of Goods Available for Sale: $43,800
Sales:
- 1 August: 2000 units sold @ $10 = $20,000
- 15 August: 1000 units sold @ $15 = $15,000
- 30 August: 1000 units sold @ $11 = $11,000
Total Cost of Goods Sold: $46,000
Closing Inventory:
Units remaining: 800
Cost of 800 units @ $11 = $8,800
Therefore, the cost of closing inventory is $8,800 and the cost of goods sold is $46,000.
Periodic Inventory System
Opening Balance: 2000 units @ $10 = $20,000
Purchases:
- 15 July: 1000 units @ $15 = $15,000
- 31 July: 800 units @ $11 = $8,800
Total Cost of Goods Available for Sale: $43,800
Cost of Goods Sold:
- 1 August: 2000 units sold (1000 FIFO, 1000 LIFO)
- Cost of 1000 units @ $10 = $10,000 (FIFO)
- Cost of 1000 units @ $11 = $11,000 (LIFO)
- 15 August: 1000 units sold (800 FIFO, 200 LIFO)
- Cost of 800 units @ $10 = $8,000 (FIFO)
- Cost of 200 units @ $11 = $2,200 (LIFO)
- 30 August: 1000 units sold FIFO
- Cost of 1000 units @ $11 = $11,000 (FIFO)
Total Cost of Goods Sold: $42,200 (FIFO) or $43,200 (LIFO)
Closing Inventory:
Units remaining: 800
Cost of 800 units @ $11 = $8,800
Therefore, the cost of closing inventory is $8,800 and the cost of goods sold is $42,200 (FIFO) or $43,200 (LIFO).
Perpetual Inventory System
Opening Balance: 2000 units @ $10 = $20,000
Purchases:
- 15 July: 1000 units @ $15 = $15,000
- 31 July: 800 units @ $11 = $8,800
Total Cost of Goods Available for Sale: $43,800
Sales:
- 1 August: 2000 units sold @ $10 = $20,000
- 15 August: 1000 units sold @ $15 = $15,000
- 30 August: 1000 units sold @ $11 = $11,000
Total Cost of Goods Sold: $46,000
Closing Inventory:
Units remaining: 800
Cost of 800 units @ $11 = $8,800
Therefore, the cost of closing inventory is $8,800 and the cost of goods sold is $46,000.
Periodic Inventory System
Opening Balance: 2000 units @ $10 = $20,000
Purchases:
- 15 July: 1000 units @ $15 = $15,000
- 31 July: 800 units @ $11 = $8,800
Total Cost of Goods Available for Sale: $43,800
Cost of Goods Sold:
- 1 August: 2000 units sold (1000 FIFO, 1000 LIFO)
- Cost of 1000 units @ $10 = $10,000 (FIFO)
- Cost of 1000 units @ $11 = $11,000 (LIFO)
- 15 August: 1000 units sold (800 FIFO, 200 LIFO)
- Cost of 800 units @ $10 = $8,000 (FIFO)
- Cost of 200 units @ $11 = $2,200 (LIFO)
- 30 August: 1000 units sold FIFO
- Cost of 1000 units @ $11 = $11,000 (FIFO)
Total Cost of Goods Sold: $42,200 (FIFO) or $43,200 (LIFO)
Closing Inventory:
Units remaining: 800
Cost of 800 units @ $11 = $8,800
Therefore, the cost of closing inventory is $8,800 and the cost of goods sold is $42,200 (FIFO) or $43,200 (LIFO).
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Problem -From the following transactions calculate the cost of closing inventory and cost of goods sold by applying FIFO method under perpetual and periodic inventory systems respectively: Date 1 July 2019 Transactions Opening balance brought forward Units 2000 Price Per Unit (3) 10 15 July 2019 Purchases 1000 15 11 31 July 2019 Purchases 800 1 August 2019 Sales 2400 15 August 2019 Sales 1000 16 August 2019 Purchases 800 30 August 2019 Sales 1000 15 Solution:?
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Problem -From the following transactions calculate the cost of closing inventory and cost of goods sold by applying FIFO method under perpetual and periodic inventory systems respectively: Date 1 July 2019 Transactions Opening balance brought forward Units 2000 Price Per Unit (3) 10 15 July 2019 Purchases 1000 15 11 31 July 2019 Purchases 800 1 August 2019 Sales 2400 15 August 2019 Sales 1000 16 August 2019 Purchases 800 30 August 2019 Sales 1000 15 Solution:? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Problem -From the following transactions calculate the cost of closing inventory and cost of goods sold by applying FIFO method under perpetual and periodic inventory systems respectively: Date 1 July 2019 Transactions Opening balance brought forward Units 2000 Price Per Unit (3) 10 15 July 2019 Purchases 1000 15 11 31 July 2019 Purchases 800 1 August 2019 Sales 2400 15 August 2019 Sales 1000 16 August 2019 Purchases 800 30 August 2019 Sales 1000 15 Solution:? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Problem -From the following transactions calculate the cost of closing inventory and cost of goods sold by applying FIFO method under perpetual and periodic inventory systems respectively: Date 1 July 2019 Transactions Opening balance brought forward Units 2000 Price Per Unit (3) 10 15 July 2019 Purchases 1000 15 11 31 July 2019 Purchases 800 1 August 2019 Sales 2400 15 August 2019 Sales 1000 16 August 2019 Purchases 800 30 August 2019 Sales 1000 15 Solution:?.
Problem -From the following transactions calculate the cost of closing inventory and cost of goods sold by applying FIFO method under perpetual and periodic inventory systems respectively: Date 1 July 2019 Transactions Opening balance brought forward Units 2000 Price Per Unit (3) 10 15 July 2019 Purchases 1000 15 11 31 July 2019 Purchases 800 1 August 2019 Sales 2400 15 August 2019 Sales 1000 16 August 2019 Purchases 800 30 August 2019 Sales 1000 15 Solution:? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Problem -From the following transactions calculate the cost of closing inventory and cost of goods sold by applying FIFO method under perpetual and periodic inventory systems respectively: Date 1 July 2019 Transactions Opening balance brought forward Units 2000 Price Per Unit (3) 10 15 July 2019 Purchases 1000 15 11 31 July 2019 Purchases 800 1 August 2019 Sales 2400 15 August 2019 Sales 1000 16 August 2019 Purchases 800 30 August 2019 Sales 1000 15 Solution:? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Problem -From the following transactions calculate the cost of closing inventory and cost of goods sold by applying FIFO method under perpetual and periodic inventory systems respectively: Date 1 July 2019 Transactions Opening balance brought forward Units 2000 Price Per Unit (3) 10 15 July 2019 Purchases 1000 15 11 31 July 2019 Purchases 800 1 August 2019 Sales 2400 15 August 2019 Sales 1000 16 August 2019 Purchases 800 30 August 2019 Sales 1000 15 Solution:?.
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Problem -From the following transactions calculate the cost of closing inventory and cost of goods sold by applying FIFO method under perpetual and periodic inventory systems respectively: Date 1 July 2019 Transactions Opening balance brought forward Units 2000 Price Per Unit (3) 10 15 July 2019 Purchases 1000 15 11 31 July 2019 Purchases 800 1 August 2019 Sales 2400 15 August 2019 Sales 1000 16 August 2019 Purchases 800 30 August 2019 Sales 1000 15 Solution:?, a detailed solution for Problem -From the following transactions calculate the cost of closing inventory and cost of goods sold by applying FIFO method under perpetual and periodic inventory systems respectively: Date 1 July 2019 Transactions Opening balance brought forward Units 2000 Price Per Unit (3) 10 15 July 2019 Purchases 1000 15 11 31 July 2019 Purchases 800 1 August 2019 Sales 2400 15 August 2019 Sales 1000 16 August 2019 Purchases 800 30 August 2019 Sales 1000 15 Solution:? has been provided alongside types of Problem -From the following transactions calculate the cost of closing inventory and cost of goods sold by applying FIFO method under perpetual and periodic inventory systems respectively: Date 1 July 2019 Transactions Opening balance brought forward Units 2000 Price Per Unit (3) 10 15 July 2019 Purchases 1000 15 11 31 July 2019 Purchases 800 1 August 2019 Sales 2400 15 August 2019 Sales 1000 16 August 2019 Purchases 800 30 August 2019 Sales 1000 15 Solution:? theory, EduRev gives you an
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