Every method in this AC116 Unit 4 inventory costing comparison starts from the same goods available for sale and ends at a different gross profit, with the gap explained. Searches like "ac 116 unit 4 assignment example", "ac116 unit 4 sample" and "ac116 unit 4 example" land here.
What a finished AC116 Unit 4 inventory costing comparison looks like
The page opens with the purchase record exactly as the problem gives it: beginning inventory and three or four dated purchases, each with units, unit cost and extended cost, totaled to cost of goods available for sale. Units sold and units on hand follow. After that, each method gets a block of its own, and every block ends on the same two lines: the cost assigned to ending inventory and the cost assigned to goods sold. Under first in, first out the ending units are priced from the latest purchases; under last in, first out from the earliest layers; under weighted average at one unit cost carried to four decimals. The closing table gives each method a column and reads down through sales, cost of goods sold, gross profit and ending inventory.
How a AC116 Unit 4 example is structured
The purchase record is stated once and never retyped, so every method visibly draws on identical facts, the unit's whole point. Each method block then follows the same internal order: which units are assumed to remain, what they cost, which units are assumed sold, and what those cost. Both lines are costed from the layers directly rather than one derived by subtraction, so their sum matching the available figure in every block is a genuine check. Weighted average shows its unit cost computation on a line of its own. Last comes the comparison table, with a short paragraph beneath it that names the method with the highest gross profit, ties that to the direction of prices during the period, and notes the balance sheet consequence. Where the problem uses a perpetual system, the blocks become running ledgers instead.
The purchase record, stated once
Beginning inventory and each dated purchase with units, unit cost and extended cost, totaled to goods available for sale. Every method below draws from these lines without retyping them.
First in, first out
Ending units priced from the most recent purchases, sold units from the oldest layers. Under rising prices this block carries the lowest cost of goods sold.
Last in, first out
The reverse assignment: newest costs to goods sold, earliest layers left on the shelf. Under rising prices this block reports the smallest gross profit and the oldest inventory figure.
Weighted average
One unit cost, computed as available cost divided by available units, applied to both the sold and the remaining units. Any rounding difference is absorbed in cost of goods sold and labeled.
The comparison and its sentence
Sales, cost of goods sold, gross profit and ending inventory in three columns. The paragraph beneath names the highest-income method and says why prices made it so.
Where marks go in AC116 Unit 4
Proof failures cost the most. A block whose two foot lines fail to sum to goods available has gone wrong somewhere in the layers, and graders stop crediting it at that point. Reversing the layers is the next common loss, pricing ending inventory from the oldest purchases under first in, first out. Weighted average computed as a simple mean of the unit prices, ignoring how many units each purchase carried, loses points in most sections even though it looks reasonable. A comparison table without a sentence naming the effect gives up the interpretive marks the unit reserves. Sections that include lower of cost or market deduct for a write-down applied to the wrong method's inventory figure, and a few deduct for claiming the highest-income method is the best one.
Get a AC116 Unit 4 example written to your instructions
Unit 4's purchase record, with dates, units and unit costs, is the input that decides every number; include the section's instructions and rubric with it. All three methods come back costed on that record inside 24-48h, each block proved against goods available, and a first custom sample is free.
AC116 Unit 4 questions, answered
Where does lower of cost or market fit into the comparison?
After the three blocks, in sections that include it. The chosen method's ending inventory is compared with its market figure, item by item or in total as the problem directs, and written down if market is lower. Most AC116 problems send the write-down to cost of goods sold, and the sample shows the comparison line before the entry so the amount can be traced.
Why does my weighted average figure differ slightly from the answer key?
Almost always rounding. A unit cost rounded to two decimals and then multiplied by several hundred units drifts by a few dollars. Carrying the unit cost to four places, or computing cost of goods sold as available cost minus ending inventory, removes most of the gap. The sample labels any remaining rounding so a grader can see it was deliberate.
Why does the comparison table include ending inventory?
Because the method that reports the most income under rising prices also leaves the most recent, highest costs on the balance sheet, and the course wants both effects named together. Last in, first out does the opposite, keeping old costs in inventory for as long as the layers survive. A table showing only gross profit tells half of what the unit is testing.