During April, Leary Company sold 1,000 units of Product Q. Product Q’s beginning inventory and purchases during the month are shown below. (Assume the periodic inventory system is used.)
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Assignment Template attached below.
|April 1||Beginning inventory||200 units @ $1|
|April 5||Purchases||200 units @ $2|
|April 10||Purchases||200 units @ $3|
|April 15||Purchases||200 units @ $4|
|April 20||Purchases||200 units @ $5|
|April 25||Purchases||200 units @ $6|
Required: Use the periodic inventory system to answer the following questions.
- Compute the total units available for sale.
- Compute the total cost of the units available for sale.
- Compute the FIFO cost of goods sold (COGS) in dollars.
- Compute the FIFO ending inventory (EI) in dollars.
- Compute the LIFO COGS in dollars.
- Compute the LIFO EI in dollars.
- Compute the weighted average COGS in dollars.
- Compute the weighted average EI in dollars.
- Prove the sum of COGS and EI for each method equals the goods available for sale for both units and dollars.
- Compute the gross profit (GP) for each method assuming the 1000 units were sold for $10 each.
Complete this assignment using an Excel spreadsheet, and date and explain each entry on your deliverable.
Below is the Excel spreadsheet needed to complete this assignment