Calculating Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO,
ID: 2454106 • Letter: C
Question
Calculating Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO, LIFO, and Weighted Average Cost Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki’s records show the following for the month of January. Sales totaled 310 units.
Date Units Unit Cost Total Cost
Beginning Inventory
Jan 1
240
$80
$19200
Purchase
Jan 15
360
90
32,400
Purchase
Jan 24
200
110
22,000
2. Calculate the number of units in ending inventory.
Ending Inventory
?
Units
3. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
Cost of Ending Inventory
Cost Of goods Sold
FIFO
?
?
LIFO
?
?
Weighted Average Cost
?
?
Required
1.Calculate the number and cost of goods available for sale.
Number of Goods Available for Sale
800
Units
Cost of goods for sales
?
Beginning Inventory
Jan 1
240
$80
$19200
Purchase
Jan 15
360
90
32,400
Purchase
Jan 24
200
110
22,000
Explanation / Answer
2) 800 - 310 = 490 units
3)
FIFO ( COGS) = (240* 80 + 70*90 ) = 25,500
Ending = 73,600 - 25,500 = $48,100
LIFO COGS= (200*110 ) + (110 *90) = $31,900
ending = 73,600 - $31,900 = $41,700
Average cost = $73,600/ 800 = 92
ending inventory 490 unitsRelated Questions
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