Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an it
ID: 2341250 • Letter: P
Question
Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows Jan. 1 Inventory Mar. 10 Purchase Aug. 30 Purchase Dec. 12 Purchase There are 80 units of the item in the physical inventory at December 31. The periodic inventory 40 units $104 60 units $112 30 units $118 70 units $122 Determine the inventory cost and the cost of merchandise sold by three methods. Round interim cal answers to the nearest whole dollar Cost of Merchandise Inventory and Cost of Merchandise Sold Inventory MethodMerchandise Inventory Merchandise Sold First-in, first-out (FIFO) Last-in, first-out (LIFO) Weighted average costExplanation / Answer
Answer
Cost of merchandise inventory and cost of merchandise sold.
Merchandise Inventory
Merchandise sold
FIFO
$ 9,720.00
$ 13,240.00
LIFO
$ 8,640.00
$ 14,320.00
Weighted Average
$ 9,184.000
$ 13,776.00
Working
Units
Cost per unit
value
Opening Stock
40
$ 104.00
$ 4,160.00
Purchases
10-Mar
60
$ 112.00
$ 6,720.00
30-Aug
30
$ 118.00
$ 3,540.00
12-Dec
70
$ 122.00
$ 8,540.00
Total unuits and cost
200
$ 22,960.00
Average Cost of Inventory
Units
(A)
200
Total Cost
(B)
$ 22,960.00
Average Cost
(C=B/A)
$ 114.80
FIFO
Total Units Available for sale
200
Units Sold
120
Closing Stock in Units
80
Valuation
Closing stock
70
@
$ 122.00
$ 8,540.00
10
@
$ 118.00
$ 1,180.00
Value Of Closing Stock
$ 9,720.00
Cost of Goods sold
(22960-13240)
$ 13,240.00
LIFO
Total Units Avalable for sale
200
Units Sold
120
Closing Stock in Units
80
Valuation
Closing stock
40
@
$ 104.00
$ 4,160.00
40
@
$ 112.00
$ 4,480.00
Value Of Closing Stock
$ 8,640.00
Cost of Goods sold
(22960-8640)
$ 14,320.00
Weighted Average
Total Units Avalable for sale
200
Units Sold
120
Closing Stock in Units
80
Valuation
Closing stock
80
@
$ 114.80
$ 9,184.00
Value Of Closing Stock
$ 9,184.000
Cost of Goods sold
(Total Purchase and opening stock Minus Closing Stock)
$ 13,776.00
Merchandise Inventory
Merchandise sold
FIFO
$ 9,720.00
$ 13,240.00
LIFO
$ 8,640.00
$ 14,320.00
Weighted Average
$ 9,184.000
$ 13,776.00
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