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COGS and INVENTORY Calculations

1) Average Cost Sample of how to fill out this page using Average Cost
COST OF GOODS AVAILABLE FOR SALE Feed All Fertilizer COST OF GOODS AVAILABLE FOR SALE xxxxx Fertilizer
Date Explanation Units Unit Cost Total Cost Date Explanation Units Unit Cost Total Cost
6/15 Purchase 10 $5.00 $50.00
6/28 Purchase 25 $5.10 $127.50
Total 35 $ 177.50
ENDING INVENTORY COST OF GOODS SOLD
$ 177.50 /35 $5.07 Cost of Goods Available for Sale $ 177.50
ENDING INVENTORY COST OF GOODS SOLD Less: Ending Inventory $ 55.77
Units Unit Cost Total Cost Cost of Goods Sold $ 121.73
11 $ 5.07 $55.77
A good example is located on page 283 of your e-text (Illustration 6-6)
COST OF GOODS AVAILABLE FOR SALE Weed and Feed All Fertilizer
Date Explanation Units Unit Cost Total Cost
ENDING INVENTORY COST OF GOODS SOLD
2) First-In, First-Out (FIFO)
COST OF GOODS AVAILABLE FOR SALE Feed All Fertilizer
Date Explanation Units Unit Cost Total Cost
Sample of the EI and COGS calculation for FIFO or LIFO, Cost of Goods Available is the same as in the Average Cost sample above
ENDING INVENTORY COST OF GOODS SOLD ENDING INVENTORY COST OF GOODS SOLD
Date Units Unit Cost Total Cost Cost of Goods Available for Sale $ 177.50
6/28 11 5.10 56.10 Less: Ending Inventory $ 56.10
Cost of Goods Sold $ 121.40
Total 11 $ 56.10
COST OF GOODS AVAILABLE FOR SALE Weed and Feed All Fertilizer
Date Explanation Units Unit Cost Total Cost
ENDING INVENTORY COST OF GOODS SOLD
2) Last-In, First-Out (LIFO)
COST OF GOODS AVAILABLE FOR SALE Feed All Fertilizer
Date Explanation Units Unit Cost Total Cost
ENDING INVENTORY COST OF GOODS SOLD
COST OF GOODS AVAILABLE FOR SALE Weed and Feed All Fertilizer
Date Explanation Units Unit Cost Total Cost
ENDING INVENTORY COST OF GOODS SOLD

LCM

Lower of Cost or Market (LCM)
Sample of how to fill out the LCM sheet
Item Cost Market LCM Item Cost Market LCM
XXX Fertilizer $ 150.00 $ 175.00 $ 150.00
YYY Fertilizer 85.00 79.00 79.00
Total Inventory $ 229.00
These numbers are total cost and market, not per unit
A good example is located on page 290 of your e-text (Illustration 6-16)

Income Statement

Sample of COGS section of Income Statement
Cost of Goods Sold
Inventory, June 1 $0
Purchases $0
Less: Purchase Returns and Allowances $0
Cost of Goods Purchased - 0
Cost of Goods Available for Sale - 0
Inventory, June 30 - 0
Cost of Goods Sold $0
A good example is located on page 242 of your e-text (Illustration 5-B2)