Scribd Logo
Upload

Welcome to Scribd!

  • Cost Flow Formula

    Uploaded by

    Sean Thyrdee
    11 views4 pages
    This document shows the calculation of inventory costs under different costing methods - FIFO perpetual, weighted average, and moving average. It provides inventory balances, purchases and sales transactions with unit quantities and costs, and calculates cost of goods sold and gross profit for each method. The weighted average method results in a lower ending inventory balance and cost of goods sold than FIFO or moving average.

    Original Description:

    Original Title

    Cost flow formula

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document shows the calculation of inventory costs under different costing methods - FIFO perpetual, weighted average, and moving average. It provides inventory balances, purchases and sales transactions with unit quantities and costs, and calculates cost of goods sold and gross profit for each method. The weighted average method results in a lower ending inventory balance and cost of goods sold than FIFO or moving average.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    11 views4 pages

    Cost Flow Formula

    Uploaded by

    Sean Thyrdee
    This document shows the calculation of inventory costs under different costing methods - FIFO perpetual, weighted average, and moving average. It provides inventory balances, purchases and sales transactions with unit quantities and costs, and calculates cost of goods sold and gross profit for each method. The weighted average method results in a lower ending inventory balance and cost of goods sold than FIFO or moving average.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    FIFO PERPETUAL

    Units Total Amount


    Inventory, beg 2,000.00 50.00 100,000.00
    Purchases: 3,000.00 55.00 165,000.00
    2,000.00 60.00 120,000.00 400.00
    1,000.00 65.00 65,000.00
    CGAS 8,000.00 450,000.00

    1,500.00 50.00 75,000.00


    3,600.00 500.00 50.00 25,000.00
    3,000.00 55.00 165,000.00
    100.00 60.00 6,000.00
    1,500.00 60.00 90,000.00
    COGS 6,600.00 361,000.00

    400.00 60.00 24,000.00


    1,000.00 65.00 65,000.00
    Inventory,end 1,400.00 89,000.00 450,000.00

    Sales 6,600.00 80.00 528,000.00


    COGS (361,000.00)
    Gross Profit 167,000.00

    WEIGHTED AVERAGE (PERIODIC)


    Total Amount of CGAS 450,000.00
    Total units Available for Sale 8,000.00
    Average Cost per unit 56.25
    Units on hand 1,400.00
    Inventory, end 78,750.00

    CGAS 450,000.00 Units sold 6,600.00


    Inventory, end (78,750.00) Average cost/ unit 56.25
    COGS 371,250.00 371,250.00

    Sales 528,000.00
    COGS (371,250.00)
    Gross Profit 156,750.00

    MOVING AVERAGE (PERPETUAL)


    Receipt Issuances
    2,000.00 50.00 100,000.00
    3,000.00 55.00 165,000.00
    1,500.00 53.00 79,500.00
    2,000.00 60.00 120,000.00
    3,600.00 55.55 199,963.64
    1,000.00 65.00 65,000.00
    1,500.00 58.81 88,208.46
    COGS 6,600.00 367,672.10

    Sales 528,000.00 Inventory, end


    COGS (6,600.00) COGS
    Gross Profit 521,400.00 CGAS
    Balance
    2,000.00 50.00 100,000.00
    5,000.00 53.00 265,000.00
    3,500.00 53.00 185,500.00
    5,500.00 55.55 305,500.00
    1,900.00 55.55 105,536.36
    2,900.00 58.81 170,536.36
    1,400.00 58.81 82,327.90 Inventory, end

    82,327.90
    367,672.10
    450,000.00

    You might also like