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Date Received Issued Quantity Unit Cost Amount Quantity Unit Cost

This document contains information about inventory valuation methods including FIFO, weighted average, and moving average. It provides inventory balances, purchases and sales transactions, and cost of goods sold calculations for August 2019 using each of the three methods. The summaries show that while the ending inventory valuations differ slightly between methods, the overall cost of goods sold and gross profit amounts are nearly identical regardless of which inventory costing technique is used.

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Leslyne Love C. Nogra
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55 views6 pages

Date Received Issued Quantity Unit Cost Amount Quantity Unit Cost

This document contains information about inventory valuation methods including FIFO, weighted average, and moving average. It provides inventory balances, purchases and sales transactions, and cost of goods sold calculations for August 2019 using each of the three methods. The summaries show that while the ending inventory valuations differ slightly between methods, the overall cost of goods sold and gross profit amounts are nearly identical regardless of which inventory costing technique is used.

Uploaded by

Leslyne Love C. Nogra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Moving Average

DATE RECEIVED ISSUED


Quantity Unit Cost Amount Quantity Unit Cost
08/01/2019
08/05/2019 4,780 19.00 90,820
08/08/2019 3,500 18.84
08/09/2019 (100) 18.84
08/28/2019 2,120 19.50 41,340
08/30/2019 3,200 19.14
08/31/2019 (20) 19.50 (390)

AVERAGE COST RETAIL FIFO


Beg Inventory 640,000 888,000 Beg Inventory
Purchases 3,670,000 5,098,000 Purchases
Purchase returns (85,000) (108,000) Purchase returns
Freight in 79,000 Freight in
Net Markup 134,000 Net Markup
Net Markdown (165,000) Net Markdown
Total goods available for sale 4,304,000 5,847,000 Total goods available for sale

Cost-to-Retail ratio 73.61% 2


Cost-to-Retail ratio
Sales 5,492,000
Less: Sales returns (38,000) Sales
Add: Employee discounts 67,000 Less: Sales returns
Normal losses 39,000 Add: Employee discounts
Net Sales 5,560,000 Normal losses
Net Sales
Est End Inventory @ Retail 287,000 1
Est End Inventory @ Cost 211,262 2 Est End Inventory @ Retail
Est End Inventory @ Cost

CONSERVATIVE COST RETAIL


Beg Inventory 640,000 888,000
Purchases 3,670,000 5,098,000
Purchase returns (85,000) (108,000)
Freight in 79,000
Net Markup 134,000
4,304,000 6,012,000
Net Markdown (165,000)
Total goods available for sale 4,304,000 5,847,000
Cost-to-Retail ratio 71.59% 2

Sales 5,492,000
Less: Sales returns (38,000)
Add: Employee discounts 67,000
Normal losses 39,000
Net Sales 5,560,000

Est End Inventory @ Retail 287,000 1


Est End Inventory @ Cost 205,464 2
SUED BALANCE
Amount Quantity Unit Cost Amount
1,250 18.25 22,813
6,030 18.84 113,633
65,956 2,530 18.84 47,677
(1,884) 2,630 18.84 49,561
4,750 19.14 90,901 Inventory
61,239 1,550 19.14 29,662 FIFO 29,835
1,530 19.13 29,272 Weighted Average 29,091
Moving Average 29,272
1,530 19.50 29,835
154,583 8,130 19.01 FIFO
1,530 19.01 29,091 Beg Inventory 22,813
Add: Net Purchases 131,770
COST RETAIL TGAFS 154,583
640,000 888,000 Less: End Inventory (29,835)
3,670,000 5,098,000 Cost of Sales 124,748
hase returns (85,000) (108,000)
79,000
134,000 JOURNAL ENTRIES:
(165,000)
l goods available for sale 4,304,000 5,847,000 Moving Average
3,664,000 4,959,000 08/05/2019 Inventories 90,820
Accounts Payable 90,820
-to-Retail ratio 73.89% 2
08/08/2019 Accounts Receivabl 182,000
5,492,000 Sales 182,000
: Sales returns (38,000)
: Employee discounts 67,000 Cost of Sales 65,956
Normal losses 39,000 Inventories 65,956
5,560,000
08/09/2019 Sales Returns & Al 5,400
End Inventory @ Retail 287,000 1 Accounts Receivable 5,400
End Inventory @ Cost 212,052 2
Inventories 1,884
Cost of Sales 1,884

08/28/2019 Inventories 41,340


Accounts Payable 41,340

08/30/2019 Accounts Receivabl 174,400


Sales 174,400

Cost of Sales 61,239


Inventories 61,239

08/31/2019 Accounts Payable 390


Inventories 390

FIFO Periodic
08/05/2019 Purchases 90,820
Accounts Payable 90,820

08/08/2019 Accounts Receivabl 182,000


Sales 182,000

08/09/2019 Sales Returns & Al 5,400


Accounts Receivable 5,400

08/28/2019 Purchases 41,340


Accounts Payable 41,340

08/30/2019 Accounts Receivabl 174,400


Sales 174,400

08/31/2019 Accounts Payable 390


Purchase Returns & Allow 390

08/31/2019 Cost of Sales 124,748


Inventories, End 29,835
Purchase Returns 390
Purchases 132,160
Inventories, Beg 22,813
Cost of Sales Gross Profit
124,748 226,253
125,491 225,509 182,000
125,310 225,690 174,400
(5,400)
Weighted Moving FIFO Weighted Moving
22,813 22,813 Sales 351,000 351,000 351,000
131,770 131,770 Less: COS (124,748) (125,491) (125,310)
154,583 154,583 Gross Profit 226,253 225,509 225,690
(29,091) (29,272)
125,491 125,310

a. 27
b. 15
42

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