Specific Identification Method SE2. Assume the following data with regard to inv

Question

Specific Identification Method SE2. Assume the following data with regard to inventory for Vegan Company LO2 Aug. 1 Inventory 40 units@ $10 per unit 400 8 Purchase 50 units @$11 per unit 550 22 Purchase 35 units @ $12 per unit 420 $1,370 Goods available for sale 125 units 45 units 25 units 55 units Aug. 15 Sale 28 Sale Inventory, Aug. 31 Assuming that the inventory consists of 30 units from the August 8 purchase and 25 units from the purchase of August 22, calculate the cost of ending inventory and cost of goods sold. Average-Cost Method: Periodic Inventory System SE3. Using the data in SE2, calculate the cost of ending inventory and cost of goods sold according to the average-cost method under the periodic inventory system. (Round your final answer to the nearest dollar.) LO2 LO 2 FIFO Method: Periodic Inventory System SE4. Using the data in SE2, calculate the cost of ending inventory and cost of goods sold according to the FIFO method under the periodic inventory system LIFO Method: Periodic Inventory System SEs. Using the data in SE2, calculate the cost of ending inventory and cost of goods sold according to the LIFO method under the periodic inventory system. 02

Explanation / Answer

2 Cost of ending inventory = (30*11)+(25*12)= $630 Cost of goods sold = 1370-630= $740 3 Average cost = 1370/125= $10.96 Cost of ending inventory = 55*10.96=$603 Cost of goods sold = 1370-603= $767 4 Cost of ending inventory = (35*12)+(20*11)= $640 Cost of goods sold = 1370-640= $730 5 Cost of ending inventory = (40*10)+(15*11)= $565 Cost of goods sold = 1370-565= $805

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