Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an it
ID: 2432033 • 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 50 units @ $114 Mar. 10 Purchase 50 units @ $122 Aug. 30 Purchase 30 units @ $128 Dec. 12 Purchase 70 units @ $130 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.
Explanation / Answer
FIFO Date Particulars Units Cost Amount COGS Jan -01 Beginning Inventory 50.00 114.00 5,700.00 Mar -10 Purchase 50.00 122.00 6,100.00 Aug -30 Purchase 30.00 128.00 3,840.00 Dec -12 Purchase 70.00 130.00 9,100.00 Total available for sale 200.00 24,740.00 COGS 120.00 14,360.00 50*114+50*122+20*128 Ending Inventory 80.00 10,380.00 10*128 + 70*130 COGS 14,360.00 Ending Inventory 10,380.00 LIFO Date Particulars Units Cost Amount COGS Jan -01 Beginning Inventory 50.00 114.00 5,700.00 Mar -10 Purchase 50.00 122.00 6,100.00 Aug -30 Purchase 30.00 128.00 3,840.00 Dec -12 Purchase 70.00 130.00 9,100.00 Total available for sale 200.00 24,740.00 COGS 120.00 15,380.00 70*130 + 30*128 + 20*122 Ending Inventory 80.00 9,360.00 30*122 + 50*114 COGS 15,380.00 Ending Inventory 9,360.00 Weighted Average Date Particulars Units Cost Amount COGS Jan -01 Beginning Inventory 50.00 114.00 5,700.00 Mar -10 Purchase 50.00 122.00 6,100.00 Aug -30 Purchase 30.00 128.00 3,840.00 Dec -12 Purchase 70.00 130.00 9,100.00 Total available for sale 200.00 123.70 24,740.00 COGS 120.00 123.70 14,844.00 120*123.70 Ending Inventory 80.00 123.70 9,896.00 80*123.70 COGS 14,844.00 Ending Inventory 9,896.00
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