COST OF GOODS SOLD IN 2019

Beginning inventory $20,000

Cost of purchase 150,000

Cost of goods available for sale 170,000

Ending inventory ($30,000 - $3,000) (27,000)

Cost of goods sold $143,000

COST OF GOODS SOLD IN 2020

Beginning inventory (Since ending inventory of previous $27,000

year = Beg inventory of current year)

Cost of purchase 175,000

Cost of goods available for sale 202,000

Ending inventory ($35,000 + $5,000) (40,000)

Cost of goods sold $162,000

6.2 A
1) (Minh Phương)
Beginning Inventory (150 x $10) $ 1,500
Add: Purchases
Mar 14 (400 x $15) $6,000
Jul 30 (450 x $18) 8,100
Oct 26 (250 x $20) 5,000
Total Purchases 19,100
Cost of Goods Available for Sale $20,600

The number of units available for sale = 150 + 400 + 450 + 250 = 1250 units

2) Compute the number of units in ending inventory (Quỳnh Trâm)

Date Activities Units sold at Retail

Jan 10 Sales 90 units

Mar 15 Sales 350 units
Oct 5 Sales 460 units
Total 900 units

The number of units in ending inventory

= The number of units available for sale - The number of units sold = 1250 - 900 = 350 units
 P2.A
3a) Periodic FIFO ( Minh Nguyên)

Available for Sale Cost of good sold Ending Inventory

Date Units Unit Cost Units Unit Cost of Units in Unit Ending
Sold Cost Goods Ending Cost Inventory
Sold Inventory Value

Beginning 150 $10 150 $10 $1,500 0 $10 $0

inventory
Purchase-Mar.14 400 $15 400 $15 $6,000 0 $15 $0
Purchase- Jul.30 450 $18 350 $18 $6,300 100 $18 1,800
Purchase-Oct.26 250 $20 0 $20 $0 250 $20 5,000
Total 1250 900 $13,800 350 $6,800

3b) Periodic LIFO (Minh Nguyên)

Available for Sale Cost of good sold Ending Inventory

Date Units Unit Cost Units Unit Units in Unit Ending
Sold Cost Cost of Ending Cost Inventory
Goods Inventory Value
Sold

Beginning 150 $10 0 $10 $0 150 $10 $1,500

inventory
Purchase-Mar.14 400 $15 200 $15 $3,000 200 $15 $3,000
Purchase- Jul.30 450 $18 450 $18 $8,100 0 $18 0
Purchase-Oct.26 250 $20 250 $20 $5,000 0 $20 0

Total 1250 900 $16,100 350 $4,500

 c.Weighted Average (Tien Tan)

Average Cost

Cost of goods available for sale/Number of units for sale: $20,600/ 1250= $16,48 per unit

Ending Units : 1250-950=350

Ending Inventory= Ending Units x Average Cost = 350 x $16,48 = $5,768
Cost of Goods Sold : Units Sold x Average Cost = 900 x $16,48 = $14,832

d.Specific Identification: (Tien Tan)

Specific Identification. (Assume that units sold consist of 150 units from beginning inventory,
240 units from Mar 14 purchase, 290 units from Jul 30 purchase, and 220 units from Oct 26
purchase)
Available for Sale Cost of good sold Ending Inventory

Date Units Unit Cost Units Unit Cost of Units in Unit Ending
Sold Cost Goods Ending Cost Inventory
Sold Inventory Value

Beginning 150 $10 150 $10 $1,500 0 $10 $0

inventory
Purchase-
400 $15 240 $15 3,600 160 $15 2,400
Mar.14
Purchase- 450 $18 290 $18 5,220 160 $18 2,880
Jul.30
Purchase- 220 $20 4,400 30 $20 600
250 $20
Oct.26
200 $14,720 350 $5,880
Total 1250
4.Compute gross profit for each method (Tien Tan)

Pacific Company
Income Statement (Partial)

Specific Weighted FIFO LIFO

Identification Average

Sales $43,750 $43,750 $43,750 $43,750

Cost of goods sold 14,720 14,832 13,800 16,100

Gross Profit

$29,030 $28,918 $29,950 $27,650