Compute Cost Of Goods Available For Sale And Ending Inventory At December 31, 2015

Calculation of closing stock and COGS (FIFO method)
Date	Particulars	Purchase	Closing Balance
No of units	Unit cost	Total cost	No of units	Unit cost	Total cost		Date	Particulars	FIFO	Weighted average	Specific identification
2015
01-01-2015	Balance inventory				1,800	$   2.50	$   4,500.00		14-03-2015	COGS	$ 4,495.00	$             4,130.81	$                  4,147.00
30-01-2015	Purchase	2,500	$        3.10	$ 7,750.00	1800	$   2.50	$ 12,250.00		31-08-2015	COGS	$ 4,800.00	$             6,060.85	$                  4,800.00
					2500	$   3.10
14-03-2015	Sale	1450	$        3.10	$ 4,495.00	1800	$   2.50	$   7,755.00
					1050	$   3.10
01-05-2015	Purchase	1,200	$        4.00	$ 4,800.00	1800	$   2.50	$ 12,555.00
					1050	$   3.10
					1200	$   4.00
31-08-2015	Sale	1200	$        4.00	$ 4,800.00	1800	$   2.50	$   5,585.00
		700	$        3.10	$ 2,170.00	350	$   3.10
Calculation of closing stock and COGS (Weighted average method)
Date	Particulars	Purchase	Closing Balance
No of units	Unit cost	Total cost	No of units	Unit cost	Total cost
2015
01-01-2015	Balance inventory				1,800	$   2.50	$   4,500.00
30-01-2015	Purchase	2,500	$        3.10	$ 7,750.00	4,300	$   2.85	$ 12,250.00
14-03-2015	Sale	1,450	$        2.85	$ 4,130.81	2,850	$   2.85	$   8,119.19
01-05-2015	Purchase	1,200	$        4.00	$ 4,800.00	4,050	$   3.19	$ 12,919.19
31-08-2015	Sale	1,900	$        3.19	$ 6,060.85	2,150	$   3.19	$   6,858.33
Calculation of closing stock and COGS (FIFO method)
Date	Particulars	Purchase	Closing Balance
No of units	Unit cost	Total cost	No of units	Unit cost	Total cost
2015
01-01-2015	Balance inventory				1,800	$   2.50	$   4,500.00
30-01-2015	Purchase	2,500	$        3.10	$ 7,750.00	1800	$   2.50	$ 12,250.00
					2500	$   3.10
14-03-2015	Sale	580	$        2.50	$ 4,147.00	1220	$   2.50	$   8,103.00
		870	$        3.10		1630	$   3.10
01-05-2015	Purchase	1,200	$        4.00	$ 4,800.00	1220	$   2.50	$ 12,903.00
					1630	$   3.10
					1200	$   4.00
31-08-2015	Sale	1,200	$        4.00	$ 4,800.00	1220	$   2.50	$   5,933.00
		700	$        3.10	$ 2,170.00	930	$   3.10
		Machine A	Machine B	Machine C
	Carrying amount	$                                            10,500	$    28,000	$    26,000
	Appraisal value	$                                            11,500	$    32,000	$    28,500
	Installation cost	$                                                 800	$      1,100	$      1,100
	Renovation cost	$                                                 600	$      1,400	$      1,600
	Operating hours	7,000	7,000	7,000
	Calculation of cost of machinery
		Machine A	Machine B	Machine C
	Carrying amount or appraisal value which ever is less	$                                            10,500	$    28,000	$    26,000
	Add: Installation cost	$                                                 800	$      1,100	$      1,100
	Add: Renovation cost (it has been considered as Capital expenditure)	$                                                 600	$      1,400	$      1,600
	Total cost	$                                            11,900	$    30,500	$    28,700
Journal entry
Date	Particulars	Lf	Debit	Credit
	Depreciation a/c		13865
	Machine A			2725
	Machine B			5700
	Machine C			5440
	(Depreciation amount has been charged)
Machine	Method	Computation
A	Straight line	=(11900-1000)/4 = 2725
B	Units of production	=(30500-2000)*7000/35000 = 5700
C	Double declining balance	=(287001500)*20% = 5440