Consider the following information for Maynor Company, which uses a perpetual in

Question

Consider the following information for Maynor Company, which uses a perpetual inventory system TransactionUnits Unit Cost Total Cost January 1 March 28 August 22 October 14 Beginning Inventory 12 Purchase Purchase Purchase $62 68 72 78 $ 744 1,496 1,728 2,262 24 29 Goods Available for Sale 87 $ 6,230 The company sold 29 units on May 1 and 24 units on October 28 Required Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods a. FIFO Ending Inventory Cost of Goods Sold b. LIFO Ending Inventory Cost of Goods Sold Weighted Average. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar.) Ending Inventory Cost of Goods Sold

Explanation / Answer

Solution:

(a) FIFO

Ending inventory =$2,622

Cost of goods sold=$3,608

Working:

cost of goods sold = 12 x $62 +22 x $68+ 19x $72

=$3,608

Ending inventory= 5x $72+ 29x $78 =$2,622

(b) LIFO

Ending inventory=$2,428

Cost of goods sold=$3,802

Working:

Cost of goods sold= 22x$68+ 7x$62+ 24x $78

=$3,802

Ending inventory= 5x$62 + 24x$72 +5x$78 =$2,428

(C) weighted average

Ending inventory=$2,532

Cost of goods sold=$3,698

  

Working:

Cost of goods sold= 29x 65.88 + 24x 74.47= $3,698

Ending inventory= 34x 74.47= $2,532

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.