July 1 Beginning merch Inventory 18 units @55 each
July 8 15 units @ 60 each
July 15 12 units @ 61 each
July 26 11 units @ 62 each
At July 31, Cambridge counts 20 units of merchandise inventory on hand.
pg. 356 chapter 6 -
1. FIFO method for problem
At July 31, Cambridge counts 20 units of merchandise inventory on hand. - Step 1:
July 1 18 units @55= $990
July 8 15 units @60= $900
July 15 12 units @61= $732
July 26 11 units @62= $682
--------------------------------
step 1. 56 units $3,304 (total cost of purchases. This is total amount)
Step 2:
Have--- 56 units
ending---(20 units)
------------------------
, Sold 36 units- this number is what you use.
Step 3: (I Want 36 units)
18units * 55= 990
15units *60= 900
3units* 61= 183
-----------------------
COGS 36 units= 2,073 (FIFO method of Cost of Goods Sold)
Step 4: Ending inventory (Total cost - COGS)
56 units--- 3,304
36 units-- (2,073)
---------------------
EI= Total cost- COGS
EI= 3,304- 2,073= 1,231
20 units 1,231
2. LIFO Method
At July 31, Cambridge counts 20 units of merchandise inventory on hand. - Step 1:
July 1 18 units @55= $990
July 8 15 units @60= $900
July 15 12 units @61= $732
July 26 11 units @62= $682
--------------------------------
56 units $3,304
step 2: Have 56 units
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