Exercise 8.

2 ONETEL - template

Events Units Unit Cost Total Cost

Inventory,
100 8 800
January 1
Purchases,
60 9 540
June 1
Purchases,
80 10 800
October 1
Goods
available for 240 8.92 2140
sale
Goods sold
during the 150 8.92 1,337.50
year
Ending
90 8.92 802.50
Inventory

Specific identification, assuming that the merchant selected for sale 90 units from initial
inventory plus 60 units purchased in June*.
Cost of sales
150 8.40 1,260.00
(COGS)
Ending
90 9.78 880.00
Inventory
* which supposes there is a means of keeping track of the purchase cost (machine readable code line,
registration numbers...)

Weighted Average Cost method

Cost of sales
150 8.92 1337.5
(COGS)
Ending
Inventory 90 8.92 802.5

FIFO
method

Cost of sales
150 8.33 1250
(COGS)
Ending
90 9.89 890
Inventory

LIFO
method

Cost of sales
150 9.47 1420
(COGS)
Ending
90 8.00 720
Inventory