Using the Four Inventory Costing Methods Scenario 1

FIFO

ACT300 Principles of Accounting I
Module 4: Critical Thinking Template Option #1
FIFO Units Cost per unit Sale per Unit Totals
Beginning Inventory – 0 $0.00 $0.00 $0
Purchases and Sales
Mar 15-Purchase – 0 $0.00 $0.00 $0 Data from the problem
April 25-Sale – 0 $0.00 $0.00 0 The opening inventory consisted of 50 units at $2 each.
Jun 15-Purchase – 0 $0.00 $0.00 0
Jun 30-Sale – 0 $0.00 $0.00 0 Purchases Sales
Cost of Goods Available for Sale – 0 $0.00 $0.00 $0 Date Units $ per unit Date Units Unit $Price
Cost of Goods Sold (COGS) – 0 $0.00 $0.00 0 15-Mar 200 3 25-Apr 250* 5
Ending Inventory – 0 $0.00 $0.00 $0 15-Jun 600 5 30-Jun 500** 6
COGS Calculation Units COGS SalesTotals Gross Profit
Beginning Inventory – 0 $0.00 $0.00 $0
Purchases – Mar 15 – 0 $0.00 $0.00 $0
Sale – April 25 – 0 $0.00 $0.00 $0
Purchases – June 15 $0.00 $0.00 $0
Sale – June 30 $0.00 $0.00 $0
. .
Totals – 0 $0.00 $0.00 $0

LIFO

ACT300 Principles of Accounting I
Module 4: Critical Thinking Template Option #1
LIFO Units Cost per unit Sale per Unit Totals
Beginning Inventory – 0 $0.00 $0.00 $0
Purchases and Sales
Mar 15-Purchase – 0 $0.00 $0.00 $0 Data from the problem
April 25-Sale – 0 $0.00 $0.00 0 The opening inventory consisted of 50 units at $2 each.
Jun 15-Purchase – 0 $0.00 $0.00 0
Jun 30-Sale – 0 $0.00 $0.00 0 Purchases Sales
Cost of Goods Available for Sale – 0 $0.00 $0.00 $0 Date Units $ per unit Date Units Unit $Price
Cost of Goods Sold (COGS) – 0 $0.00 $0.00 0 15-Mar 200 3 25-Apr 250* 5
Ending Inventory – 0 $0.00 $0.00 $0 15-Jun 600 5 30-Jun 500** 6
COGS Calculation Units COGS SalesTotals Gross Profit
Beginning Inventory – 0 $0.00 $0.00 $0
Purchases – Mar 15 – 0 $0.00 $0.00 $0
Sale – April 25 – 0 $0.00 $0.00 $0
Purchases – June 15 $0.00 $0.00 $0
Sale – June 30 $0.00 $0.00 $0
. .
Totals – 0 $0.00 $0.00 $0

Specific Identification

ACT300 Principles of Accounting I
Module 4: Critical Thinking Template Option #1
Specific Identification Units Cost per unit Sale per Unit Totals
Beginning Inventory – 0 $0.00 $0.00 $0
Purchases and Sales *for specific identification, sold 50 units of opening inventory and 200 units of March 15 purchase
Mar 15-Purchase – 0 $0.00 $0.00 $0 **for specific identification, sold 500 units of June 15 purchase
April 25-Sale – 0 $0.00 $0.00 0
Jun 15-Purchase – 0 $0.00 $0.00 0
Jun 30-Sale – 0 $0.00 $0.00 0
Cost of Goods Available for Sale – 0 $0.00 $0.00 $0 Data from the problem
Cost of Goods Sold (COGS) – 0 $0.00 $0.00 0 The opening inventory consisted of 50 units at $2 each.
Ending Inventory – 0 $0.00 $0.00 $0
Purchases Sales
COGS Calculation Units COGS SalesTotals Gross Profit Date Units $ per unit Date Units Unit $Price
Beginning Inventory – 0 $0.00 $0.00 $0 15-Mar 200 3 25-Apr 250* 5
Purchases – Mar 15 – 0 $0.00 $0.00 $0 15-Jun 600 5 30-Jun 500** 6
Sale – April 25 – 0 $0.00 $0.00 $0
Purchases – June 15 $0.00 $0.00 $0
Sale – June 30 $0.00 $0.00 $0
. .
Totals – 0 $0.00 $0.00 $0

Weighted Average

ACT300 Principles of Accounting I
Module 4: Critical Thinking Template Option #1
Weighted Average Units Cost per unit Sale per Unit Totals Data from the problem
Beginning Inventory – 0 $0.00 $0.00 $0 The opening inventory consisted of 50 units at $2 each.
Purchases and Sales
Mar 15-Purchase – 0 $0.00 $0.00 $0 Purchases Sales
April 25-Sale – 0 $0.00 $0.00 0 Date Units $ per unit Date Units Unit $Price
Jun 15-Purchase – 0 $0.00 $0.00 0 15-Mar 200 3 25-Apr 250* 5
Jun 30-Sale – 0 $0.00 $0.00 0 15-Jun 600 5 30-Jun 500** 6
Cost of Goods Available for Sale – 0 $0.00 $0.00 $0
Cost of Goods Sold (COGS) – 0 $0.00 $0.00 0
Ending Inventory – 0 $0.00 $0.00 $0 Weighted Average Cost= Cost of Units Available for Sales
Total Units Available for Sale
COGS Calculation Units COGS SalesTotals Gross Profit
Beginning Inventory – 0 $0.00 $0.00 $0
Purchases – Mar 15 – 0 $0.00 $0.00 $0
Sale – April 25 – 0 $0.00 $0.00 $0
Purchases – June 15 $0.00 $0.00 $0
Sale – June 30 $0.00 $0.00 $0
$0.00 $0.00
Totals – 0 $0.00 $0.00 $0

Requirement #2_Effect on Profit

ACT300 Principles of Accounting I
Module 4: Critical Thinking Template Option #1
Data from the problem
The opening inventory consisted of 50 units at $2 each.
Purchases Sales
Date Units $ per unit Date Units Unit $Price
15-Mar 200 3 25-Apr 250* 5
15-Jun 600 5 30-Jun 500** 6
Compute the effect on profit ( Use formulas and linking to relevant data in worksheets when appropriate).
FIFO LIFO Specific Identification Weighted Average
Sales $0 $0 $0 $0
Cost of goods sold 0 0 0 0
Gross Profit $0 $0 $0 $0
Comments and observations: