Aircard Corporation tracks the number of units purchased and sold throughout eac

Question

Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a periodic inventory system. The following are the transactions for the month of July July 1 July 5 July 13 July 17 July 25 July 27 Beginning Inventory Sold Purchased Sold Purchased Sold Units Unit Cost 2,000 $25 1,000 6,000 3,000 8,000 5,000 29 31 Calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircard uses (a) FIFO, (b) LIFO, or (c) weighted average cost. (Round "Cost per Unit" to 2 decimal places.) Weighted Average Cost FIFO LIFO Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold

Explanation / Answer

Solution a:

Solution b:

Solution 3:

Computation of COGS and ending inventory - FIFO Particulars Cost of goods available for sale Cost of goods sold Ending Inventory Nos of units Unit Cost Cost of goods available for sale Nos of units sold Unit Cost Cost of goods sold Nos of units in ending inventory Unit Cost Ending inventory Beginning inventory 2000 $25.00 $50,000 2000 $25.00 $50,000.00 0 $25.00 $0.00 Purchases: 13-Jul 6000 $29.00 $174,000 6000 $29.00 $174,000.00 0 $29.00 $0.00 25-Jul 8000 $31.00 $248,000 1000 $31.00 $31,000.00 7000 $31.00 $217,000.00 Total 16000 $472,000 9000 $255,000.00 7000 $217,000.00

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