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: