Question :
Question
Greehey Enterprises markets the CDs for the performing artist Cara : 1164812
Question
Greehey Enterprises markets the CDs for the performing artist Cara Lotta. At the beginning of March,
Greehey had beginning inventory of 1,500 Lotta CDs with a unit cost of $7.
During March, Greehey made the following purchases of Lotta CDs.
Date:
Quantity:
Cost:
Date:
Quantity:
Cost:
Mar 5
3,000
$8
Mar 21
4,000
$10
Mar 13
5,500
$9
Mar 26
2,000
$11
During March, 12,500 units were sold. Greehey uses a perpetual inventory system.
Prepare answers on an Excel spreadsheet using the following templates.
Label each answer with the letter in parenthesis. Turn in hard copy of spreadsheet with 2nd copy (ctrl ~).
Instructions:
(a) Determine the cost of goods available for sale.
COST OF GOODS AVAILABLE FOR SALE
Date
Explanation
Units
Unit Cost
Total Cost
Mar 1
Text
Number
Value
Formula
Mar 5
Text
Number
Value
Formula
Mar 13
Text
Number
Value
Formula
Mar 21
Text
Number
Value
Formula
Mar 26
Text
Number
Value
Formula
Total
Formula
Formula
(b) Determine the ending inventory under FIFO. (c) Determine the COGS under FIFO.
FIFO
Ending Inventory
(2)
Cost of Goods Sold
Date
Units
Unit Cost
Total Cost
Title
Amount
Mar 26
Quantity
Amount
Formula
Title
Amount
Mar 21
Quantity
Amount
Formula
Title
Formula
Formula
Formula
(d) Prove the accuracy of the cost of goods sold under FIFO.
Proof of Cost of Goods Sold
Date
Units
Unit Cost
Total Cost
Mar 1
Quantity
Amount
Formula
Mar 5
Quantity
Amount
Formula
Mar 13
Quantity
Amount
Formula
Mar 21
Quantity
Amount
Formula
Formula
Formula
(e) Determine the ending inventory under LIFO. (f) Determine the COGS under LIFO.
LIFO
Ending Inventory
Cost of Goods Sold
Date
Units
Unit Cost
Total Cost
Title
Amount
Mar 1
Quantity
Amount
Formula
Title
Amount
Mar 5
Quantity
Amount
Formula
Title
Formula
Formula
Formula
(g) Prove the accuracy of the cost of goods sold under LIFO.
Date
Units
Unit Cost
Total Cost
Mar 26
Quantity
Amount
Formula
Mar 21
Quantity
Amount
Formula
Mar 13
Quantity
Amount
Formula
Mar 5
Quantity
Amount
Formula
Formula
Formula
(h) Determine the ending inventory under weighted average.
(1)
Ending Inventory
(2)
Cost of Goods Sold
Cost of goods available for sale
Avg. cost per unit =
Less: Ending inventory
Cost of goods sold
Greehey Enterprises markets the CDs for the performing artist Cara Lotta. At the beginning of March,
Greehey had beginning inventory of 1,500 Lotta CDs with a unit cost of $7.
During March, Greehey made the following purchases of Lotta CDs.
Date:
Quantity:
Cost:
Date:
Quantity:
Cost:
Mar 5
3,000
$8
Mar 21
4,000
$10
Mar 13
5,500
$9
Mar 26
2,000
$11
During March, 12,500 units were sold. Greehey uses a perpetual inventory system.
Prepare answers on an Excel spreadsheet using the following templates.
Label each answer with the letter in parenthesis. Turn in hard copy of spreadsheet with 2nd copy (ctrl ~).
Instructions:
(a) Determine the cost of goods available for sale.
COST OF GOODS AVAILABLE FOR SALE
Date
Explanation
Units
Unit Cost
Total Cost
Mar 1
Text
Number
Value
Formula
Mar 5
Text
Number
Value
Formula
Mar 13
Text
Number
Value
Formula
Mar 21
Text
Number
Value
Formula
Mar 26
Text
Number
Value
Formula
Total
Formula
Formula
(b) Determine the ending inventory under FIFO. (c) Determine the COGS under FIFO.
FIFO
Ending Inventory
(2)
Cost of Goods Sold
Date
Units
Unit Cost
Total Cost
Title
Amount
Mar 26
Quantity
Amount
Formula
Title
Amount
Mar 21
Quantity
Amount
Formula
Title
Formula
Formula
Formula
(d) Prove the accuracy of the cost of goods sold under FIFO.
Proof of Cost of Goods Sold
Date
Units
Unit Cost
Total Cost
Mar 1
Quantity
Amount
Formula
Mar 5
Quantity
Amount
Formula
Mar 13
Quantity
Amount
Formula
Mar 21
Quantity
Amount
Formula
Formula
Formula
(e) Determine the ending inventory under LIFO. (f) Determine the COGS under LIFO.
LIFO
Ending Inventory
Cost of Goods Sold
Date
Units
Unit Cost
Total Cost
Title
Amount
Mar 1
Quantity
Amount
Formula
Title
Amount
Mar 5
Quantity
Amount
Formula
Title
Formula
Formula
Formula
(g) Prove the accuracy of the cost of goods sold under LIFO.
Date
Units
Unit Cost
Total Cost
Mar 26
Quantity
Amount
Formula
Mar 21
Quantity
Amount
Formula
Mar 13
Quantity
Amount
Formula
Mar 5
Quantity
Amount
Formula
Formula
Formula
(h) Determine the ending inventory under weighted average.
(1)
Ending Inventory
(2)
Cost of Goods Sold
Cost of goods available for sale
Avg. cost per unit =
Less: Ending inventory
Cost of goods sold
