PROBLEM 11-4 (IAA)

MOVING AVERAGE UNITS UNITS COST TOTAL COST

March 1 Beginning 1000 MARCH 1 1,000 270 270,000
6 Purchase 3000 6 3,000 250 750,000
14 Purchase 6000 4,000 255 1,020,000
25 Purchase 4000 13,000 9 (2,000) 255 (510,000)
TOTAL UNITS: 14,000 2,000 255 510,000
LESS: 14 6,000 280 1,680,000
March 9 Sale 2000 8,000 273.75 2,190,000
31 Sale 8000 10000 25 4,000 210 840,000
ENDING INVENTORY 4000 12,000 252.5 3,030,000
31 (8,000) 252.5 2,020,000
FIFO ENDING INVENTORY 4,000 252.5 1,010,000
ENDING INVENTORY
4000 x 210 = 840,000 COST OF GOODS SOLD
510,000 + 2,020,000 = 2,530,000
COST OF GOODS SOLD
10000 x 270 = 2,700,000
PROBLEM 11-6 (IAA)
UNITS UNIT COST TOTAL COST
1-Jan 10,000 40 400,000
31 (5,000)
5,000
1-Apr 15,000 50 750,000
20,000
31-Jul (18,000)
2,000
1-Oct 25,000 60 1,500,000
27,000
31-Dec (12,000)
ENDING INVENTORY 15,000

FIFO
OCTOBER 1 15,000 60 900,000

WEIGHTED AVERAGE (PERIODIC)

JANUARY 1 10,000 40 400,000
APRIL 1 15,000 50 750,000
OCTOBER 1 25,000 60 1,500,000
GOODS AVAILABLE FOR SALE 50,000 2,650,000
LESS: SALES 35,000
ENDING INVENTORY 15,000

WEIGHTED AVERAGE
(2,650,000/50,000) 15,000 53 795,000

MOVING AVERAGE (PERPETUAL)

JANUARY 1 10,000 40 400,000
31 (5,000) 40 (200,000)
5,000 40 200,000
APRIL 1 15,000 50 750,000
20,000 47.50 950,000
JULY 31 (18,000) 47.50 (855,000)
2,000 47.50 95,000
OCTOBER 1 25,000 60 1,500,000
27,000 59.07 1,595,000
31-Dec (12,000) 59.07 (708,840)
BALANCE 15,000 59.07 886,160
 WEIGHTED
FIFO AVERAGE
INVENTORY - JANUARY 1 400,000 400,000
PURCHASES 2,250,000 2,250,000
GOODS AVAILABLE FOR SALE 2,650,000 2,650,000
LESS: INEVENTORY - DECEMBER 31 900,000 795,000
COST OF GOODS SOLD 1,750,000 1,855,000

COST OF GOODS SOLD - WEIGHED AVAERAGE PERPETUAL

JANUARY 31 SALE 200,000
JULY 31 SALE 855,000
DECEMBER 31 SALE 708,840
TOTAL COST OF GOODS SOLD 1,763,840