ACCT $101$

Chapter $6$ FIFO, LIFO, MWIA, Specific Identification

Practice Question

ABC Company has the following inventory and purchases during the fiscal year erided December $31,2020$:

Beginning inventory

Jan $10$

July $21$

Oct $5$

Dec $15$

$50$ units

$40$ units

$10$ units

$20$ units

$30$ units

$$11/$unit

$10/$unit

$12/$unit

$13/$unit

$14/$unit

ABC Company has two sales during the period. The specific units sold are the entire beginning inventory, $20$ units from the Jan $10$ purchase, and $15$ units from the Oct $5$ purchase. The units have a selling price of $$75\mathrm{.}00$ per unit.

Feb $28$

Oct $31$

$55$ units

$30$ units

REQUIRED:

Calculate cost of goods available for sale and units available for sale $(5$ marks$).$

Calculate units remaining in ending inventory $(2$ mark$).$

Assuming a PERPETUAL SYSTEM, calculate the dollar value of ending inventory using the following methods $(20$ marks$).$

$($a$)$ FIFO method

$($b$)$ Moving Weighted Avarage