ACCT 1000/2210 Module 7 – Class Presentation

7-2B – FIFO, LIFO and Weighted Average Inventory Records and Entries

Northhills Super Save uses a perpetual inventory system and reports the following transactions
for the month of December for one of its products:

Date Explanation Units Cost/Price

December 1 Beginning inventory 6 $40.00
December 6 Purchase 4 42.00
December 11 Sale 7 100.00
December 24 Purchase 12 43.40
December 26 Purchase 5 44.00
December 31 Sale 10 100.00

Required:
a.) Prepare inventory records using:
i. The FIFO method
ii. The LIFO method (skip, not covered)
iii. The weighted average method
b.) Under each of the methods you prepared in part a.) above, compute Sales, Cost of
Goods Sold and Gross Profit.
c.) Prepare journal entries for December 26 and December 31 under all methods.

LIFO inventory method prohibited under IFRS.

ACCT 1000/2210 Module 7 – Class Presentation

7-2B – FIFO, LIFO and Weighted Average Inventory Records and Entries
Part 1

a) i) FIFO
ACCT 1000/2210 Module 7 – Class Presentation

7-2B – FIFO, LIFO and Weighted Average Inventory Records

Part 3