Exercise 2:

1st hypothesis: weighted average cost method with accumulation on the initial stock

Input Output
Date Desc quantity unit price Total price quantity unit price
1-Jan beg stock 100 $ 12.50 $ 1,250.00
3-Jan issue no10 80 $ 12.66
8-Jan receipt 200 $ 13.10 $ 2,620.00
12-Jan issue no11 120 $ 12.66
18-Jan issue no30 60 $ 12.66
22-Jan receipt 160 $ 12.80 $ 2,048.00
3-Feb issue no35 150 $ 12.66
5-Feb receipt 300 $ 12.50 $ 3,750.00
6-Feb receipt 135 $ 12.00 $ 1,620.00
19-Feb issue no41 240 $ 12.66
25-Feb receipt 80 $ 13.20 $ 1,056.00
26-Feb issue no48 100 $ 12.66
Total 975 $ 12.66 $ 12,344.00 750

2nd hypothesis: weighted average cost method after each entry

Input Output
Date Desc QTY UP TP QTY UP
1-Jan beg stock 100 $ 12.50 $ 1,250.00
3-Jan issue no10 80 $ 12.50
8-Jan receipt 200 $ 13.10 $ 2,620.00
12-Jan issue no11 120 $ 13.05
18-Jan issue no30 60 $ 13.05
22-Jan receipt 160 $ 12.80 $ 2,048.00
3-Feb issue no35 150 $ 12.85
5-Feb receipt 300 $ 12.50 $ 3,750.00
6-Feb receipt 135 $ 12.00 $ 1,620.00
19-Feb issue no41 240 $ 12.40
25-Feb receipt 80 $ 13.20 $ 1,056.00
26-Feb issue no48 100 $ 12.59
Total 975 $ 12,344.00 750

3rd hypothesis: first-in, first-out method

Input Output
Date Desc QTY UP TP QTY UP
1-Jan beg stock
3-Jan issue no10 80 $ 12.50
8-Jan receipt 200 $ 13.10 $ 2,620.00
 12-Jan issue no11 20 $ 12.50
100 $ 13.10
18-Jan issue no30 60 $ 13.10
22-Jan receipt 160 $ 12.80 $ 2,048.00

3-Feb issue no35 40 $ 13.10

110 $ 12.80
5-Feb receipt 300 $ 12.50 $ 3,750.00

6-Feb receipt 135 $ 12.00 $ 1,620.00

19-Feb issue no41 50 $ 12.80

190 $ 12.50
25-Feb receipt 80 $ 13.20 $ 1,056.00

26-Feb issue no48 100 $ 12.50

Total 875 $ 11,094.00 750

4th hypothesis: last in, first out method

Input Output
Date Desc QTY UP TP QTY UP
1-Jan beg stock
3-Jan issue no10 80 $ 12.50
8-Jan receipt 200 $ 13.10 $ 2,620.00

12-Jan issue no11 120 $ 13.10

18-Jan issue no30 60 $ 13.10

22-Jan receipt 160 $ 12.80 $ 2,048.00

3-Feb issue no35 150 $ 12.80

5-Feb receipt 300 $ 12.50 $ 3,750.00

6-Feb receipt 135 $ 12.00 $ 1,620.00

19-Feb issue no41 135 $ 12.00

105 $ 12.50

25-Feb receipt 80 $ 13.20 $ 1,056.00

26-Feb issue no48 80 $ 13.20

20 $ 12.50

Total 875 $ 11,094.00 750

ock

Output Blance
Total price quantity unit price Total price
100 $ 12.50 $ 1,250.00
$ 1,012.84 20
220
$ 1,519.26 100 AVCO= $ 12.66
$ 759.63 40
200
$ 1,899.08 50
350
485
$ 3,038.52 245
325
$ 1,266.05 225 $12.66
$ 9,495.38

Output Blance
TP QTY UP TP
100 $ 12.50 $ 1,250.00
$ 1,000.00 20 $ 12.50 $ 250.00
220 $ 13.05 $ 2,870.00
$ 1,565.45 100 $ 13.05 $ 1,304.55
$ 782.73 40 $ 13.05 $ 521.82
200 $ 12.85 $ 2,569.82
$ 1,927.36 50 $ 12.85 $ 642.45
350 $ 12.55 $ 4,392.45
485 $ 12.40 $ 6,012.45
$ 2,975.24 245 $ 12.40 $ 3,037.22
325 $ 12.59 $ 4,093.22 AVCO= $12.59
$ 1,259.45 225 $ 12.59 $ 2,833.77
$ 9,510.23 225 $ 12.59 $ 2,833.77

Output Blance
TP QTY UP TP
100 $ 12.50 $ 1,250.00
$ 1,000.00 20 $ 12.50 $ 250.00
20 $ 12.50 $ 250.00
 200 $ 13.10 $ 2,620.00
$ 250.00 100 $ 13.10 $ 1,310.00
$ 1,310.00
$ 786.00 40 $ 13.10 $ 524.00
40 $ 13.10 $ 524.00
160 $ 12.80 $ 2,048.00
$ 524.00 50 $ 12.80 $ 640.00
$ 1,408.00
50 $ 12.80 $ 640.00
300 $ 12.50 $ 3,750.00
50 $ 12.80 $ 640.00
300 $ 12.50 $ 3,750.00
135 $ 12.00 $ 1,620.00
$ 640.00 110 $ 12.50 $ 1,375.00
$ 2,375.00 135 $ 12.00 $ 1,620.00
110 $ 12.50 $ 1,375.00
135 $ 12.00 $ 1,620.00
80 $ 13.20 $ 1,056.00
$ 1,250.00 10 $ 12.50 $ 125.00
135 $ 12.00 $ 1,620.00
80 $ 13.20 $ 1,056.00
$ 9,543.00 225 $ 2,801.00

Output Blance
TP QTY UP TP
100 $ 12.50 $ 1,250.00
$ 1,000.00 20 $ 12.50 $ 250.00
20 $ 12.50 $ 250.00
200 $ 13.10 $ 2,620.00
$ 1,572.00 20 $ 12.50 $ 250.00
80 $ 13.10 $ 1,048.00
$ 786.00 20 $ 12.50 $ 250.00
20 $ 13.10 $ 262.00
20 $ 12.50 $ 250.00
20 $ 13.10 $ 262.00
160 $ 12.80 $ 2,048.00
$ 1,920.00 20 $ 12.50 $ 250.00
20 $ 13.10 $ 262.00
10 $ 12.80 $ 128.00
20 $ 12.50 $ 250.00
20 $ 13.10 $ 262.00
10 $ 12.80 $ 128.00
300 $ 12.50 $ 3,750.00
 20 $ 12.50 $ 250.00
20 $ 13.10 $ 262.00
10 $ 12.80 $ 128.00
300 $ 12.50 $ 3,750.00
135 $ 12.00 $ 1,620.00
$ 1,620.00 20 $ 12.50 $ 250.00
$ 1,312.50 20 $ 13.10 $ 262.00
10 $ 12.80 $ 128.00
195 $ 12.50 $ 2,437.50
20 $ 12.50 $ 250.00
20 $ 13.10 $ 262.00
10 $ 12.80 $ 128.00
195 $ 12.50 $ 2,437.50
80 $ 13.20 $ 1,056.00
$ 1,056.00 20 $ 12.50 $ 250.00
$ 250.00 20 $ 13.10 $ 262.00
10 $ 12.80 $ 128.00
175 $ 12.50 $ 2,187.50
$ 9,516.50 225 $ 2,827.50