I am calculating inventory methods and wanted to see if anyone could double check my figures? See below
weighted Average
Date Transaction Units
1-Apr Purchase 250 Unit Cost Ext Cost
5-Apr Sold 10 $10.00 2500
10-Apr Sold 10
15-Apr Purchase 200 $15.00 3000
20-Apr Sold 250
25-Apr Sold 50
30-Apr return 10
5500 450
Unit Value $12.22
Ending Inventory value $1,711.11
COGS beginning balance $5,500.00
Less Ending inventory $1,711.11
Total COGS $3,788.89
FIFO
Transaction Units on hand Units Sold/return Inventory Value after Sales
1-Apr Purchase 250 0 $2,500.00
5-Apr Sold 250 10 $2,400.00
10-Apr Sold 240 10 $2,300.00
15-Apr Purchase 430 0 $5,300.00
20-Apr Sold 430 250 $2,700.00
25-Apr Sold 180 50 $1,950.00
30-Apr return 140 10 $2,050.00
Balance 140 $2,150.00
COGS beginning balance $5,500.00
Less Ending inventory $2,150.00
Total COGS $3,350.00
LIFO
Transaction Units on hand Units Sold/return Inventory Value after Sales
1-Apr Purchase 250 0 $3,750.00
5-Apr Sold 250 10 $3,600.00
10-Apr Sold 240 10 $3,450.00
15-Apr Purchase 430 0 $5,450.00
20-Apr Sold 430 250 $1,800.00
25-Apr Sold 180 50 $1,400.00
30-Apr return 140 10 $1,550.00
Balance 140 $1,550.00
COGS beginning balance $5,500.00
Less Ending inventory $1,550.00
Total COGS $3,950.00
To double-check your figures for the weighted average, FIFO, and LIFO inventory methods, we need to calculate the ending inventory value and the cost of goods sold (COGS) for each method.
For the weighted average method:
1. Calculate the weighted average unit value by dividing the total cost ($5,500) by the total units (450).
Weighted average unit value = $5,500 / 450 = $12.22
2. Multiply the weighted average unit value by the units on hand (140) to get the ending inventory value.
Ending inventory value = $12.22 * 140 = $1,711.11
3. Calculate the COGS by subtracting the ending inventory value from the beginning balance ($5,500).
COGS = $5,500 - $1,711.11 = $3,788.89
For the FIFO method:
1. Start with the first transaction and calculate the inventory value after each sale or return, using the cost of the earliest purchased units.
2. Calculate the ending inventory value by multiplying the unit value of the remaining units (140) by their quantity.
Ending inventory value = $2,150.00
3. Calculate the COGS by subtracting the ending inventory value from the beginning balance ($5,500).
COGS = $5,500 - $2,150.00 = $3,350.00
For the LIFO method:
1. Start with the first transaction and calculate the inventory value after each sale or return, using the cost of the latest purchased units.
2. Calculate the ending inventory value by multiplying the unit value of the remaining units (140) by their quantity.
Ending inventory value = $1,550.00
3. Calculate the COGS by subtracting the ending inventory value from the beginning balance ($5,500).
COGS = $5,500 - $1,550.00 = $3,950.00
These calculations should confirm the figures you provided for the weighted average, FIFO, and LIFO methods.