2. value 166 points M7-8 Calculating Cost of Goods Available for Sale, Cost of G
ID: 2400740 • Letter: 2
Question
2. value 166 points M7-8 Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under Peric In its first month of operations, Literacy for the Iliterate opened a new bookstore and bought merchandise in the following order: (1) 300 units at $7 on January 1. (2) 450 units at 58 on January 8, and (3) 750 units at $9 on January 29 Assuming 900 units are on hand at the end of the mont 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 Weighted Cost of Goods Available for Sale $ Ending Inventory Average Cost 12 45012,450 (7,470) 4.980 12,450 Cost of Goods SoldExplanation / Answer
FIFO
LIFO
Weighted
Average Cost
Cost of Goods Available for Sale
$ 12,450
$ 12,450
$ 12,450
Ending Inventory
($ 7,950 )
($ 7,950)
($ 7,470)
Cost of Goods Sold
$ 4,500
$ 4,500
$ 4,980
Explanation:
FIFO (Periodic)
Receipts
Cost of Goods Sold
Balance
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1 January
Purchases
300
$7
$2,100
8 January
Purchases
450
$8
$3,600
29 January
Purchases
750
$9
$6,750
Sold
300
$7
$2,100
Sold
300
$8
$2,400
150
$8
$1,200
750
$9
$6,750
Ending
1,500
$12,450
600
$ 4,500
900
$ 7,950
LIFO (Periodic)
Receipts
Cost of Goods Sold
Balance
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1 January
Purchases
300
$7
$2,100
8 January
Purchases
450
$8
$3,600
29 January
Purchases
750
$9
$6,750
Sold
600
$ 9
$5,400
150
$9
$1,350
450
$8
$3,600
300
$7
$2,100
Ending
1,500
$12,450
600
$ 5,400
900
$ 7,050
Weighted average (Periodic)
Receipts
Cost of Goods Sold
Balance
Description
Qty
Rate
Amount
Qty
Rate
Amount
Qty
Rate
Amount
1 January
Purchases
300
$7
$2,100
8 January
Purchases
450
$8
$3,600
29 January
Purchases
750
$ 9
$6,750
Goods available for sale
1,500
$8.30
$12,450
Sold
600
$8.30
$4,980
900
$8.30
$7,470
Ending
3,000
$12,450
600
$ 4,980
900
$ 7,470
FIFO
LIFO
Weighted
Average Cost
Cost of Goods Available for Sale
$ 12,450
$ 12,450
$ 12,450
Ending Inventory
($ 7,950 )
($ 7,950)
($ 7,470)
Cost of Goods Sold
$ 4,500
$ 4,500
$ 4,980
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