COST OF GOODS AVAILABLE FOR SALE
Total
Date Explanation Units Unit Cost Cost
1-Oct Begining Inventory 100 $5.50 $550
7 Purchase 165 5.95 981.75
16 Purchase 40 6.25 250
Total units available for sale 305 $1,781.75
Unit Ending Inventory (55)
Unit sold 250
FIFO
Date Purchases Cost of Goods Sold Balance Inventory
1-Oct Beginning Inventory 100 @ $5.50=$550.00
4-Oct $20@5.50=$110 80 @ $5.50= $440.00
7-Oct 165 @ $5.95= $981.75 80 @ $5.50= $440 + 165 @ $5.95 = $981.75
10-Oct 80 @ $5.50 = $440 165 @ $5.95 = $981.75
100 @ $5.95= $595 65 @ $5.95 = $386.75
16-Oct 40 @ $6.25- $250 65 @ $5.95 = $386.75 + 40 @ $6.25= $250.00
28-Oct 50@ $5.95= $297.5 15 @ $5.95 = $ 89.25 + 40 @ $6.25 = $250.00
Ending Inventory 15 @ $5.95 = $ 89.25 + 40 @ $6.25 = $250.00
Totals $1,442.50 $339.25
Cost of Goods Sold (FIFO): $1,442.50
Ending Inventory (FIFO): $339.25
LIFO
Date Purchases Cost of Goods Sold Balance Inventory
1-Oct Beginning Inventory 100 @ $5.50=$550.00
4-Oct $20@5.50=$110 80 @ $5.50= $440.00
7-Oct 165 @ $5.95= $981.75 80 @ $5.50= $440 + 165 @ $5.95 = $981.75
10-Oct 80 @ $5.50 = $440 80 @ $5.50= $440.00
100 @ $5.95= $595
16-Oct 40 @ $6.25- $250 15 @ $5.95 = $ 89.25 + 40 @ $6.25 = $250.00
28-Oct 40@ $6.25= $297.5 15 @ $5.50 = $ 82.50
Ending Inventory 15 @ $5.95 = $ 89.25
Totals $1,674.25 $82.50
Cost of Goods Sold (LIFO): $1,674.25
Ending Inventory (LIFO): $82.50
Moving Average Method
Date Purchases Cost of Goods Sold Balance Inventory
1-Oct Beginning Inventory 100 @ $5.50=$550.00
4-Oct $20@5.50=$110 80 @ $5.50= $440.00
7-Oct 165 @ $5.95= $981.75 245 @ $5.8 = $1421.75
10-Oct 180 @ $5.8=$1044 65 @ $5.8 = $377.75
16-Oct 40 @ $6.25- $250 105 @ $5.97 = $627.75
28-Oct 55 @ $5.97 = $328.35
Ending Inventory 55 @ $5.97 = $328.35
Totals $1,452.50 $328.35
Cost of Goods Sold (Moving Average Method): $1,452.50
Ending Inventory (Moving Average Method): $328.35
Determine the value of the leisure shoe category of inventory at the lower of cost or market.
Cost per Net realizable value Lower-of-cost-or
Units
unit per unit Net Realizable Value
Running shop 280 $48.00 $40.00 $11,200 ($40.00 x 280)
Walking shoes 190 56.00 58.00 $10,640 ($56.00 x 190)
Golf shoes 80 68.00 70.00 $5,440 ($68.00 x 80)
Total inventory $27,290
55
