Option #1: Using the Four Inventory Costing Methods Scenario 1
vng225
ACT300_Critical_Thinking_Template_Option_01_Module_04.xlsxFIFO
| 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: |
