\'11 AT&T;? 10:33 AM ezto.mheducation.com You are the owner of a very small busi

Question

'11 AT&T;? 10:33 AM ezto.mheducation.com You are the owner of a very small business that sells gourmet coffee. You sell only one product, a 12-ounce bag of whole- bean French roast coffee. You sell each bag of coffee for $14 each, but due to the fluctuation in commodity prices, the price you pay your supplier to stock the product is constantly changing. In your first month of operations, you bought bags of coffee from your supplier in the following order. (a) 1 units at $3 each on January 1, (b) 6 units at $5 each on January 8, and (c) 2 units at $6 each on January 29. Assuming you sold 6 units during the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost flow assumptions. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places.) FIFO LIFO Cost off Goods Available for Sale 4500O45.00 of Goods Sold Ending Inventory Hints References eB Hotel

Explanation / Answer

FIFO Date Particulars Units   Cost Amount COGS 1-Jan Purchase                      1.00                      3.00                      3.00 8-Jan Purchase                      6.00                      5.00                   30.00 29-Jan Purchase                      2.00                      6.00                   12.00 Total available for sale                      9.00                   45.00 COGS                      6.00                   28.00 1*3 + 5*5 Ending Inventory                      3.00                   17.00 1*5+2*6 COGS                                        28.00 Ending Inventory                                        17.00 LIFO Date Particulars Units   Cost Amount COGS 1-Jan Purchase                      1.00                      3.00                      3.00 8-Jan Purchase                      6.00                      5.00                   30.00 29-Jan Purchase                      2.00                      6.00                   12.00 Total available for sale                      9.00                   45.00 COGS                      6.00                   32.00 2*6+4*5 Ending Inventory                      3.00                   13.00 2*5+1*3 COGS                                        32.00 Ending Inventory                                        13.00 Weighted average cost Date Particulars Units   Cost Amount COGS 1-Jan Purchase                      1.00                      3.00                      3.00 8-Jan Purchase                      6.00                      5.00                   30.00 29-Jan Purchase                      2.00                      6.00                   12.00 Total available for sale                      9.00                      5.00                   45.00 COGS                      6.00                   30.00 6*5 Ending Inventory                      3.00                   15.00 3*5 COGS                                        30.00 Ending Inventory                                        15.00

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