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    Activity No.3

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    Krung Krung
    The document contains 4 problems involving inventory costing methods. Problem 1 involves calculating inventory costs using LIFO for tennis rackets. Problem 2 involves calculating ending inventory costs for an item using FIFO, LIFO, and average cost. Problem 3 involves calculating cost of goods sold and ending inventory for T-shirts using FIFO, LIFO, and average cost. Problem 4 involves calculating total sales, cost of goods sold, gross profit, and ending inventory for a company using various perpetual and periodic inventory costing methods.

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    Activity No.3

    Uploaded by

    Krung Krung
    169 views2 pages
    The document contains 4 problems involving inventory costing methods. Problem 1 involves calculating inventory costs using LIFO for tennis rackets. Problem 2 involves calculating ending inventory costs for an item using FIFO, LIFO, and average cost. Problem 3 involves calculating cost of goods sold and ending inventory for T-shirts using FIFO, LIFO, and average cost. Problem 4 involves calculating total sales, cost of goods sold, gross profit, and ending inventory for a company using various perpetual and periodic inventory costing methods.

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    The document contains 4 problems involving inventory costing methods. Problem 1 involves calculating inventory costs using LIFO for tennis rackets. Problem 2 involves calculating ending inventory costs for an item using FIFO, LIFO, and average cost. Problem 3 involves calculating cost of goods sold and ending inventory for T-shirts using FIFO, LIFO, and average cost. Problem 4 involves calculating total sales, cost of goods sold, gross profit, and ending inventory for a company using various perpetual and periodic inventory costing methods.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    169 views2 pages

    Activity No.3

    Uploaded by

    Krung Krung
    The document contains 4 problems involving inventory costing methods. Problem 1 involves calculating inventory costs using LIFO for tennis rackets. Problem 2 involves calculating ending inventory costs for an item using FIFO, LIFO, and average cost. Problem 3 involves calculating cost of goods sold and ending inventory for T-shirts using FIFO, LIFO, and average cost. Problem 4 involves calculating total sales, cost of goods sold, gross profit, and ending inventory for a company using various perpetual and periodic inventory costing methods.

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    © All Rights Reserved
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    Activity No.

    1. Please answer the following problems after you read the Notes on Activity No. 3.
    2. Submit the same as we resume classes but please do this on time.
    3. Just keep Safe.

    1. Beginning inventory, purchases and sales data for tennis rackets are as follows:

    Apr 3 Inventory 12 units @ P45


    11 Purchase 13 units @ P47
    14 Sale 18 units
    21 Purchase 9 units @ P60
    25 Sale 10 units

    Complete the inventory cost card assuming the business maintains a perpetual inventory system and
    calculates the cost of merchandise sold and ending inventory using LIFO.

    Cost of
    Purchases Merchandise Sold Inventory
    Date Qty Unit Total Qty Unit Total Qty Unit Total
    Cost Cost Cost Cost Cost Cost

    Balances

    2. The units of an item available for sale during the year were as follows:

    January 10 Inventory 27 units @ P90


    February 27 Purchase 54 units @ P98
    July 11 Purchase 63 units @ P106
    November 13 Purchase 36 units @ P115

    There are 50 units of the item in the physical inventory at December 31. The periodic inventory
    system is used. Determine the ending inventory cost by (a) the first-in, first-out method, (b) the last-in,
    first-out method, and (c) the average cost method. Show your work.

    3. Beginning inventory, purchases and sales data for T-shirts are as follows:

    Apr 3 Inventory 24 units @ P10


    11 Purchase 26 units @ P12
    14 Sale 36 units
    21 Purchase 18 units @ P15
    25 Sale 20 units

    Assuming the business maintains a periodic inventory system, calculate the cost of merchandise sold
    and ending inventory under the following assumptions:
    a. FIFO
    b. LIFO
    c. Average cost (round cost of merchandise sold and ending inventory to the nearest peso)

    4. Brutus Corporation, a newly formed corporation, has the following transactions during May,
    2011, it’s first month of operation.

    May 1 Purchased 500 units @ P25.00 each


    May 4 Purchased 300 units @ P24.00 each
    May 6 Sold 400 units @ P38.00 each
    May 8 Purchased 700 units @ P23.00 each
    May 13 Sold 450 units @ P37.50 each
    May 20 Purchased 250 units @ P25.25 each
    May 22 Sold 275 units @ P36.00 each
    May 27 Sold 300 units @ P37.00 each
    May 28 Purchased 550 units @ P26.00 each
    May 30 Sold 100 units @ P39.00 each

    Calculate total sales, cost of goods sold, gross profit and ending inventory using each of the following
    inventory methods:
    1. FIFO Perpetual
    2. FIFO Periodic
    3. LIFO Perpetual
    4. LIFO Periodic
    5. Average Cost Periodic (round average to nearest cent)

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