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Task 3

Accounting

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Task 3.1

Inventory accounting

Instructions

After having read and understood the learning resources in this module, work through the following exercises using Chapter 7, “Inventories”, from the textbook. Do this in excel.

Exercise 1. Cost of goods sold

Música y Más had an inventory of guitars and other musical instruments. Using the FIFO method and the perpetual inventory system, the company recorded initial inventory, purchases, and sales.

 

Determine the cost of merchandise sold and the value of the inventory.

 

Date	Detail	Quantity	(unit cost)
May 1	Initial Inventory	15	$91
6	Sale	6
8	Buys	15	95
13	Sale	4
30	Sale	5

 

 

Exercise 2. Perpetual inventory record

 

Electronic Equipment and Much More had an inventory of computers. Using the LIFO method and the perpetual inventory system the company recorded the initial inventory, purchases and sales.

 

Determine the cost of merchandise sold and the value of the inventory.

Date	Detail	Quantity	(unit cost)
May 1	Initial inventory	15	$125
6	Sale	5
8	Buys	10	110
13	Sale	4
30	Sale	2

 

Exercise 3. Perpetual inventory record

 

Música y Más had an inventory of guitars and other musical instruments. Using the average inventory method and the perpetual inventory system, the company recorded beginning inventory, purchases, and sales.

 

Determine the cost per unit and the cost of merchandise sold.

 

Date	Detail	Quantity	(unit cost)
May 1	Initial inventory	10	$82
6	Sale	5
8	Buys	15	83
13	Sale	3
30	Sale	6

 

 

 

Professor evaluation:

Heading 3.1: Inventory Posting

Heading 3.1: Inventory Posting

Criteria Ratings

This criterion depends on a learning competence Exercise 1:

a. Correctly determine the cost of merchandise sold and the inventory value using the FIFO method and the perpetual inventory system, demonstrating a thorough understanding of the required procedure.

 

This criterion depends on a learning competence Exercise 2:

1. Correctly determines the cost of merchandise sold and the inventory value using the LIFO method and the perpetual inventory system, demonstrating a thorough understanding of the required procedure.

 

This criterion depends on a learning competence Exercise 3:

a. Correctly determine the cost per unit and the cost of merchandise sold (average cost of merchandise sold) using the inventory method and the perpetual inventory system, demonstrating a thorough understanding of the required procedure.

 

 

Task 3.2

Reports with inventory posting

Instructions

After having read and understood the learning resources in this module, work through the following exercises using Chapter 7, “Inventories”, from the textbook. Do this in excel.

 

Exercise 1. FIFO, LIFO and weighted average

 

Computadoras del Futuro made several purchases and sales in April. He had operating expenses of $ 1,500.

 

Prepare three income and expense statements: one using the FIFO method, another LIFO, and the other with the weighted average (weighted average).

Calculate the cost of goods sold using the periodic inventory model.

 

Date	Detail	Quantity	(unit cost)
April 1	Initial inventory	8	$72
6	Sale	4
8	Buys	11	84
13	Sale	5
15	Sale	3
19	Buys	20	109
21	Sale	8
22	Sale	2
27	Buys	10	90
30	Sale	6

 

 

Exercise 2. Periodic inventory

 

Using the periodic inventory method, compute the cost of goods sold for the following exercise:

Date	Detail	Quantity	(unit cost)
May 1	Inicitial inventory	12	$112
6	Sale	5
8	Buys	20	103
13	Sale	6
30	Sale	5

 

 

Professor evaluation:

Heading 3.2: Reports with inventory posting.

 

This criterion depends on a learning competence Exercise 1:

a. Correctly prepare a statement of income and expenses using the FIFO method, demonstrating a thorough understanding of the required procedure.

 

This criterion depends on a learning competence. Correctly prepare a statement of income and expenses using the LIFO method, demonstrating a thorough understanding of the required procedure.

 

This criterion depends on a learning competence. Correctly prepares a statement of income and expenses (income statement) using the weighted average method (weighted average), demonstrating a thorough understanding of the required procedure.

 

This criterion depends on a learning competence. Correctly calculates the cost of goods sold using the inventory model, demonstrating a thorough understanding of the required procedure.

 

This criterion depends on a learning competence Exercise 2:

Correctly computes the cost of goods sold using the periodic inventory method, demonstrating a thorough understanding of the required procedure.