| Ans(1) | Moving Average Method | | | | | | | | | | | | | Purchases | Sales | Balance | | | Date | Particulars | # of units | Unit Cost | Total Cost | # of units | Unit Cost | Total Cost | # of units | Unit Cost | Total Cost | | | May 1 | Beginning Inventory | | | | | | | 65 | $ 7.00 | $ 455.00 | | | May 3 | Purchase | 75 | $ 10.00 | $ 750.00 | | | | 140 | $ 8.61 | $ 1,205.00 | (65+75 = 140; 455+750 = 1205) | | May 10 | Purchase | 90 | $ 7.00 | $ 630.00 | | | | 230 | $ 7.98 | $ 1,835.00 | (140+90 = 230; 1205+630 = 1835) | | May 12 | Sales | | | | 75 | $ 7.98 | $ 598.50 | 155 | $ 7.98 | $ 1,236.50 | (230-75 = 155; 1835-598.50 = 1236.50) | | May 17 | Sales | | | | 65 | $ 7.98 | $ 518.59 | 90 | $ 7.98 | $ 717.91 | (155-65 = 90; 1236.50-518.59 = 717.91) | | May 25 | Sales | | | | 25 | $ 7.98 | $ 199.50 | 65 | $ 7.98 | $ 518.41 | (90-25 = 65; 717.91-199.50 = 518.41) | | | | | | | | | $ 1,316.59 | | | | | | *Difference in the ending balance of inventory is due to rounding. | | | | | | | Moving average unit cost = Total cost/units | | | | | | | | | | 1835/230 = 7.98 | | | | | | | | | | | | | | | | | | | | | | | | | Ending Inventory = | 518.41 | | | | | | | | | | | Cost of sales = | 1316.59 | | | | | | | | | |
| Ans(2) | Specific identificcation method: | | | Ending Inventory | | | | | 11 units at $7 = | $ 77.00 | | | | 20 units at $10 = | 200.00 | | | | 34 units at $7 = | 238.00 | | | | 65 units = | $ 515.00 | | | | | | | | | | Cost of sales: | | | | | 54 units at $7 = | $ 378.00 | | | | 55 units at $10 = | 550.00 | | | | 56 units at $7 = | 392.00 | | | | 165 Units = | $ 1,320.00 | | |
| Ans(3) | FIFO Method | | | | | | | | | | | | Purchases | Sales | Balance | | Date | Particulars | # of units | Unit Cost | Total Cost | # of units | Unit Cost | Total Cost | # of units | Unit Cost | Total Cost | | May 1 | Beginning Inventory | | | | | | | 65 | $ 7.00 | $ 455.00 | | May 3 | Purchase | 75 | $ 10.00 | $ 750.00 | | | | 65 | $ 7.00 | $ 455.00 | | | | | | | | | | 75 | $ 10.00 | $ 750.00 | | May 10 | Purchase | 90 | $ 7.00 | $ 630.00 | | | | 65 | $ 7.00 | $ 455.00 | | | | | | | | | | 75 | $ 10.00 | $ 750.00 | | | | | | | | | | 90 | $ 7.00 | $ 630.00 | | May 12 | Sales | | | | 65 | $ 7.00 | $ 455.00 | 65 | $ 10.00 | $ 650.00 | | | | | | | 10 | $ 10.00 | $ 100.00 | 90 | $ 7.00 | $ 630.00 | | May 17 | Sales | | | | 65 | $ 10.00 | $ 650.00 | 90 | $ 7.00 | $ 630.00 | | May 25 | Sales | | | | 25 | $ 7.00 | $ 175.00 | 65 | $ 7.00 | $ 455.00 | | | | | | | | | $ 1,380.00 | | | | | Ending Inventory = | $ 455.00 | | | | | | | | | | Cost of sales = | $ 1,380.00 | | | | | | | | | | | | | | | | | | | | |
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