Inventory Costing Methods using Excel's SUM and Basic Math Functions Better Bottles, Inc. uses a periodic inventory system and has provided its January inventory account activity. The Controller has asked you to calculate the Ending Inventory and Cost of Goods Sold values using periodic FIFO, LIFO, and Weighted-Average Cost methods. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, "=C6" was entered, the formula would output the result from cell C6, or 30.00 in this example. Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add), - (minus sign to subtract), * (asterisk sign to multiply), and/ (forward slash to divide). From the Excel Simulation below, if in a blank cell "=C5+C6" was entered, the formula would add the values from those cells and output the result, or 52.00 in this example. If using the other math symbols the result would output an appropriate answer for its function. SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank cell "=SUM(B4, B5, B6)" was entered, the formula would output the result of adding those three separate cells, or 80 in this example. Similarly, if in a blank cell "=SUM(B4:B6)" was entered, the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 80 in this example. FILE HOME INSERT Paste Clipboard Calibri BIU Font Inventory costing methods - Excel PAGE LAYOUT FORMULAS DATA -11 ' ' % 4 REVIEW VIEW Alignment Number Conditional Format as Cell Cells Formatting Table Styles Styles Editing - A1 A fx Better Bottles, Inc., uses a periodic inventory system and has the following B D 1 Better Bottles, Inc., uses a periodic inventory system and has the following information available: 2 3 Description Total Cost E 4 Beginning Inventory 5 Jan. 15 Purchase 2 Ion 20 Duechoca # of Units Cost per Unit 20 $ 20.00 $ 27 22.00 20.00 400.00 594.00 Sign In F FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri 11 ' ' % M Paste BIU Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Clipboard K Font K Styles A1 X fx Better Bottles, Inc., uses a periodic inventory system and has the following B D 1 Better Bottles, Inc., uses a periodic inventory system and has the following information available: E 2 3 Description 4 Beginning Inventory 5 Jan. 15 Purchase 6 Jan. 20 Purchase 7 Goods Available for Sale 8 Less: January Sales 9 Ending Inventory 10 11 # of Units Cost per Unit Total Cost 20 S 20.00 $ 400.00 27 22.00 594.00 33 30.00 990.00 80 $ 1,984.00 36 44 12 Required: 13 1) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic FIFO. 14 15 16 Description FIFO Ending Inventory # of Units Cost per Unit Total Cost 17 Jan. 20 Purchase 18 Jan. 15 Purchase 19 20 21 22 Description 23 Beginning Inventory Ion 15 Duechoca Sheet1 44 FIFO Cost of Goods Sold # of Units Cost per Unit Total Cost F FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri 11 ' ' % M Paste BIU Alignment Number Conditional Format as Cell Formatting Table Styles Cells Editing K Font Styles Clipboard 1 26 2 2 2 3 3 3 2 2 2 22 Description 23 Beginning Inventory 24 Jan. 15 Purchase x fx Better Bottles, Inc., uses a periodic inventory system and has the following B FIFO Cost of Goods Sold # of Units 36 D Cost per Unit Total Cost 27 2) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic LIFO. 28 29 30 Description LIFO Ending Inventory # of Units Cost per Unit Total Cost 31 Beginning Inventory 32 Jan. 15 Purchase 33 34 35 36 Description 37 Jan. 20 Purchase 38 Jan. 15 Purchase 39 40 44 LIFO Cost of Goods Sold # of Units 36 Cost per Unit Total Cost 41 3) Using Periodic Weighted Average, first calculate the cost per unit using the formula below. 42 Next, apply that same cost per unit to calculate both the Ending Inventory and Cost of Goods Sold. Sheet1 E F FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri 11 ' ' % Paste BIU Alignment Number Conditional Format as Cell Formatting Table Styles Clipboard K Font Styles Sign In M Cells Editing 1 X fx Better Bottles, Inc., uses a periodic inventory system and has the following B D 41 3) Using Periodic Weighted Average, first calculate the cost per unit using the formula below. 42 Next, apply that same cost per unit to calculate both the Ending Inventory and Cost of Goods Sold. 43 E 44 45 46 Weighted Average Cost = 47 48 49 50 51 52 53 54 55 Cost of Goods Available for Sale Number of Units Available for Sale Weighted Average Ending Inventory Cost per Unit # of Units = Total Cost Weighted Average Cost of Goods Sold Cost per Unit # of Units Total Cost 56 4) Use the given information and your calculated numbers to complete the Cost of Goods Sold 57 Equation below for all three inventory methods. (All numbers should be positive.) 58 59 Beginning Inventory 60 Add: Purchases 61 Goods Available for Sale 62 Less: Ending Inventory 63 Cost of Goods Sold 64 Sheet1 FIFO LIFO Wtd. Avg. per unit F