ACCT 1000/2210 Module 7 – Class Presentation

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

Riverside Inc. uses a perpetual inventory system and reports the following transactions for the
month of July:

Date Explanation Units Cost/Price

July 1 Beginning inventory 12 $100.00
July 4 Purchase 8 103.00
July 9 Purchase 5 104.00
July 17 Sale 23 400.00
July 21 Purchase 6 107.00
July 31 Sale 7 400.00

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.
Note:
LIFO inventory method prohibited under IFRS.