# InventoryProblem2Solution.xls - ALEX - Alabama Learning Exchange

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B-08.05

Tom Pryor is conducting an audit of the inventory system used by Zix Corporation. Tom
has inserted hypothetical data into the computer program that tracks inventory on a
perpetual basis. Below are the hypotheical data inserted by Tom:

Transaction         Units       Cost per unit
Beginning inventory     10             \$10
Purchase, day 1        5              \$11
Sale, day 2          6
Purchase, day 3        8               \$12
Sale, day 4          9

Solve the problem for FIFO, LIFO, and Weighted Cost methods if 8 units are on hand at
the end of the period. Consider both sales and purchases (perpetual) as you calculate.

\$      96

\$      80

Weighted Cost
\$       87
Name:
B-08.05
Date:               Section:

FIFO PERPETUAL:
Date       Purchases      Cost of Goods Sold    Balance
Day 0                                          10 X \$10 = \$100
Day 1
5 X \$11 = \$55

Day 2

Day 3

8 X \$12 = \$96

Day 4

Ending

LIFO PERPETUAL:
Date       Purchases      Cost of Goods Sold    Balance
Day 0                                          10 X \$10 = \$100
Day 1
5 X \$11 = \$55

Day 2

Day 3
8 X \$12 = \$96

Day 4

Ending

2 of 3
Name:
B-08.05
Date:               Section:

Moving Average:
Date       Purchases      Cost of Goods Sold    Balance
Day 0                                          10 X \$10 = \$100
Day 1
5 X \$11 = \$55

Day 2
Day 3
8 X \$12 = \$96

Day 4
Ending

3 of 3

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 views: 4 posted: 9/22/2009 language: English pages: 3