Glide Inc. had beginning inventory of 600 units valued at $80 per unit. The document provides information on purchases and sales throughout January and asks to calculate ending inventory, cost of goods sold, and LIFO reserve using weighted average and LIFO methods. Computations show ending inventory of 800 units valued at $92 per unit and cost of goods sold of $142,400 under weighted average.

1. Glide, Inc.'s inventory records contained the following information regarding its latest hockey
skate model: Compute cost of goods sold and ending inventory for January under the weighted
average method. Assume the Glide uses a perpetual inventory system and that beginning
inventory was valued at $80 per unit. Prepare any adjusting journal entries necessary at 1/31/15.
Compute cost of goods sold and ending inventory for January under the LIFO method assuming
a periodic inventory system. Assume the beginning inventory was valued at $78 per unit.
Prepare any adjusting journal entries necessary at 1/31/15. Calculate the LIFO reserve for the
difference between the weighted average method and the LIFO method at 1/1/15 and 1/31/15.
Reconcile the change in the LIFO reserve during January to the difference in cost of goods sold
between the two methods.
Solution
Computation of the ending inventory and cost of goods sold using perpetual method:
Purchase
Sales
Balance
Weighted average unit cost
Units
Unit cost
Total
Units
Unit cost
Total
Units
Unit cost
Total
Beginning inventory
600
80
48000
5th January
400
80
32000
400

2. 80
32000
200
80
16000
15th January
1000
95
95000
1000
95
95000
21st January
800
100
80000
800
100
80000
2000
92
184000
22nd January
800
92
73600
800
92
73600
29th January
400
92
36800
400
92
36800

3. Ending inventory
800
92
73600
1)
The cost of ending inventory is $73,600; and
The cost of goods sold is$142,400(32,000+73,600+36,800)
Purchase
Sales
Balance
Weighted average unit cost
Units
Unit cost
Total
Units
Unit cost
Total
Units
Unit cost
Total
Beginning inventory
600
80
48000
5th January
400
80
32000
400
80
32000
200
80
16000
15th January
1000

4. 95
95000
1000
95
95000
21st January
800
100
80000
800
100
80000
2000
92
184000
22nd January
800
92
73600
800
92
73600
29th January
400
92
36800
400
92
36800
Ending inventory
800
92
73600