Beginning inventory... 140 units @$6.00=$840
Sales... 100 units @$15.00
Purchase... 300 units@$5.60=1680
Sales... 250 units@$15.00
Purchase... 100 units@$5.00=$500
Totals... 540 units $3020 350units




Determine cost assigned to ending inventory and to cost of goods sold using (a) specific identification (b) weighted average (c) FIFO (d) LIFO

You need to do your own homework

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Originally Posted by danielnoahsmommy

you need to do your own homework

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I can do my own homework if I know how to do it. I need to see a solution to one problem so I have an example to see. I don't understand this, so this is why I am on this site!

Do you know what lifo and fifo stand for

Quote:

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Originally Posted by danielnoahsmommy

do you know what lifo and fifo stand for

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last in first out=lifo
first in last out=fifo

I have an accounting book but don't understand any of it. I am in an online program so I don't get quick answers like this. I just need a good example in how to work the problem or a similar problem so I can see the pattern used. I don't understand by reading about it. I need an example to follow.

Here are my notes, and hopefully they help.

Average Cost:

(cost of goods available for sale)/(Units available for sale)=Avg unit cost
(avg unit cost)x(ending inventory)=cost of ending inventory
(Cost of goods available for sale)-(cost of ending inventory)=cost of goods sold


FIFO:

1) (Goods Available for sale)-(sales)=ending inventory
2) (ending inventory)-->allocate to most recent prices = cost of ending inventory
(for example, if you bought 100 @ $10 on June 1st and 200 @ 20 on June 15, and you have 150 ending inventory, you allocate all 150 to the latest price, $20. However, if you bought 200 @ $10 on June 1st and 100 @ $20 on June 15, and you have 150 ending inventory, you allocate 100 @ $20 and the remaining 50 @$10... if this doesn't make sense, let me know and I'll try to explain better)
3) (Cost of Goods available for sale)-(Cost of ending inventory)=Cost of goods sold


LIFO:

is basically fifo except when you allocate the ending inventory, you assign it to the first price you paid, rather than the last



Let me know if this helped, and if you still don't get it morgaine300 is really good at explaining things

Rbyflame, you can't take "do you own homework" literally. That was stated badly. The idea is that, no, we aren't here to do your homework for you. You either need to make an attempt to do it first, and show us that you've made that attempt, and we can then correct, comment, give more hints, etc. Or ask a specific question about what you don't understand or just come right out and ask for an example.

What you can't do is present nothing but your problem and say nothing. Then no one knows if you've attempted it, what you do or don't understand, etc. leaving us with no clue what you actually need. When you only post the problem and nothing else, it looks as though you want someone to do it for you. And trust me, there are plenty out there who do come and think we're going to just do their work for them. (Because unfortunately, that happens at some sites.) There's no way for us to know whether you fall into this category when you don't say what you need. (That is not the same as asking for an example that is not your homework.)

For future reference...

All of you suck...

I want to know if my answer is correct:
This is my answer:
lifo fifo weighted average
Sales 5250 5250 5250
Cost of good sold 1,900 2,000 1,957.4075
Gross profit 3,350 3,250 3,292.5925
End inventory 1,344 1,850 1,062.5926

Please help me know where i committed mistake if ever..
And i want to ask you're help to know what is specific identification…thank you!!
I looking forward for your reply…

I want to know if my answer is correct:
This is my answer:
Lifo-fifo-weighted average
Sales 5250-5250-5250
Cost of good sold 1,900-2,000-1,957.4075
Gross profit 3,350-3,250-3,292.5925
End inventory 1,344 -1,850-1,062.5926

Please help me know where I committed mistake if ever..
And I want to ask you're help to know what is specific identification…thank you!!
I looking forward for your reply…

All of my first numerical figure were my answer for lifo and the second figure is for fifo then the 3rd one is for weighted average... hope you understand it

We appreciate if you start your own thread for your question rather than tagging onto to old threads. And double-posting is not useful.

The COGS for LIFO and average are correct, assuming periodic method, which has never been stated anywhere.

The ending inventory on average is also correct. However, you cannot record dollar amounts on the books out 4 decimal places. You can use the price to as many decimals as you like, but remember that this will be journalized into accounts where it's money and must be to 2 decimals.

Ending inventory on LIFO isn't correct and I don't know where you got your answer. COGS and ending inventory have to add up to the same total: $3020. That's how much was available and it either got sold (COGS) or you still have it (ending inventory).

FIFO isn't correct and I don't know where you came up with any of that.

It's useful to show your work so that we can correct mistakes.