Periodic Inventory by Three Methods; Cost of Merchandise Sold Periodic Inventory

Question

Periodic Inventory by Three Methods; Cost of Merchandise Sold

Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item avallable for sale during the year were as follows Jan.1 Inventory Mar. 10 Purchase Aug. 30 Purchase Dec. 12 Purchase There are 80 units of the Item In the physical Inventory at December 31. The perlodic Inventory system Is used Determine the Inventory cost and the cost of merchandise sold by three methods. Round Interlm calculations to one declma andfinal answers to the nearest whole dollar. 50 units$114 60 units $124 20 units $128 70 units $130 Inventory Method Merchandise Inventory Merchandise Sold Welghted average cost

Explanation / Answer

Calculate cost of merchandise inventory and cost of merchandise sold :

Inventory method Cost of goods available for sale Merchandise inventory Merchandise sold FIFO 24800 (70*130+10*128) = 10380 (24800-10380) = 14420 LIFO 24800 (50*114+30*124) = 9420 (24800-9420) = 15380 Weighted average cost 24800 (24800/200*80) = 9920 (24800-9920) = 14880

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.