ADMS 2500 PASS Session Worksheet
Week 7:
Inventory
PASS Leader: Sukhbir Sodhi
Q1:
Inventory Valuation Methods (Periodic inventory)
Date/Type
Units
Cost per Unit
Total Cost
Jan, Inventory
Mar, 100 Purchases
May, 300 Purchases
Oct, 250 Purchases
150
100
300
250
$11
$12
$13
$15
$1650
$1200
$3900
$3750
Ending balance of inventory on December 31 is 50 units. Calculate COGS and value of
ending inventory using:
1.
FIFO (first in first out):
2.
LIFO (Last in first out):
3.
Weighted Average Cost Method
4.
Specific Identification if the units sold contained, 130 from January, 90 from
March, 290 from May, and 240 from October.
Q2:
Inventory Valuation Methods (Perpetual inventory)
Date/Type
Unites
Cost per Unit
Total Cost
Jan, Inventory
Mar, 100 Purchases
May, 300 Purchases
Oct, 250 Purchases
Goods Available for Sale
150
100
300
250
800
$11
$12
$13
$15
$1650
$1200
$3900
$3750
$10500
On April 1, we sold 200 units at $20 per unit, and then we sold 100 units in July at $22.
Calculate COGS at year end dated Dec 31 using FIFO, LIFO & Weighted average
methods.
a.
FIFO
b.
LIFO
c.
Weighted average method
Q3: Solve the following:
Company ABC bought inventory on January 1
st
for $20,000. At the end of the year, the
market value for the goods was $16500. Please journalize the following transaction.
