Loupu Nyenlekewoi
HAS 525 Fanancial Health Management
Dr.
April 27, 2014
Strayer University
8.1 Assignment Exercise:
a.1) FIFO Time | Purchase or Sale | Units | Cost | Total = Cost x Units | 1 | I | 25 | 000 | $0.00 | 2 | P | 6 | 500 | $3,000.00 | 3 | S | 90 | 000 | $0.00 | 4 | P | 32 | 000 | $0.00 | 5 | p | 20 | 000 | $0.00 |

Calculate Unit Items:
Units available for sale = 6 + 32 = 38
Units sold = 25 + 90 + 20 = 135
Units in Ending Inventory = 38 - 135 = -97

Calculate Ending Inventory (last Cost Entry):
Ending Inventory = -97 units x $0.00 cost = $0.00
Cost of goods sold: Unit Unit cost Total
Inventory 500 $ 50 $25,000
Purchase 1 400 $ 80 $6,500
Purchase 2 100 $ 65 $32, 000
Purchase 3 400 $ 50 $ 20, 000 = 1400 = $83, 500

b.1) LIFO- Time | Purchase or Sale | Units | Cost | Total = Cost x Units | 1 | I | 25 | 000 | $0.00 | 2 | P | 6 | 500 | $3,000.00 | 3 | S | 90 | 000 | $0.00 | 4 | P | 32 | 000 | $0.00 | 5 | p | 20 | 000 | $0.00 |

Calculate Unit Items:
Units available for sale = 6 + 32 = 38
Units sold = 25 + 90 + 20 = 135
Units in Ending Inventory = 38 - 135 = -97

Calculate Ending Inventory (first Cost Entry):
Ending Inventory = -97 units x $0.00 cost = $0.00
500-400=100 last in first out
Cost of goods sold: Unit Unit cost Total
Purchase 1 400 $ 80 $6,500
Purchase 2 100 $ 65 $32, 000
Purchase 3