Consider the following information for Maynor Company, which uses a periodic inv
ID: 2487800 • Letter: C
Question
Consider the following information for Maynor Company, which uses a periodic inventory system:
The company sold 45 units on May 1 and 40 units on October 28.
Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods. (Round the per unit cost to two decimal places and then round your answer to the nearest whole dollar.)
Ending Invetory:
Cost of Goods Sold:
Ending Invetory:
Cost of Goods Sold:
Ending Invetory:
Cost of Goods Sold:
Consider the following information for Maynor Company, which uses a periodic inventory system:
Explanation / Answer
Answer 1. FIFO Method Calculation of Value of Ending Inventory Under FIFO Method Date Unit Cost per Unit Total Oct-14 45 86 3,870 Aug-22 5 80 400 Total Cost 50 4,270 Cost of Goods Sold Date Unit Cost per Unit Total Jan-01 20 70.00 1,400 Mar-28 30 76.00 2,280 Aug-22 35 80.00 2,800 Total COGS 85 6,480 Answer 2. LIFO Method Calculation of Value of Ending Inventory Under LIFO Method Date Unit Cost per Unit Total Jan-01 20.00 70.00 1,400.00 Mar-28 30.00 76.00 2,280.00 Total Cost 50.00 3,680.00 Cost of Goods Sold Date Unit Cost per Unit Total Aug-22 40 80.00 3,200 Oct-14 45 86.00 3,870 Total COGS 85 7,070 Answer 3. Weighted Average Cost Date Unit Cost per Unit Total Jan-01 20 70.00 1,400 Mar-28 30 76.00 2,280 Aug-22 40 80.00 3,200 Oct-14 45 86.00 3,870 Total 135 79.63 10,750 Average Cost = $10750 / 135 Units = $79.63 (Approx) Calculation of Value of Ending Inventory Under Average Method Date Unit Cost per Unit Total 50.00 79.63 3,981.48 Cost of Goods Sold Date Unit Cost per Unit Total 85 79.63 6,768.52
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