F8 A. 1 Better Bottles, Inc., uses a periodic inventory system and has the follo
ID: 2540093 • Letter: F
Question
F8 A. 1 Better Bottles, Inc., uses a periodic inventory system and has the following information available: # of Units Cost per Unit 20.00 $ 22.00 30.00 400.00 594.00 990.00 4 Beginning Inventory 20 S 5 Jan. 15 Purchase 6 Jan. 20 Purchase 7 Goods Available for Sale Less: January Sales 9 Ending Inventory 10 12 Required: 13 1) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic FIFO. 14 15 16 17 Jan. 20 Purchase 18 Jan. 15 Purchase 19 FIFO Ending Inventory # of Units Cost per l ForingTable Styles FS Awerage CosE 24 Jan. 15 Purchase 272) Callclate both the Ending Inventory and Cost of Goods Sold using Periodik LIFO 4) Use the piven indormatioe and your caculated umbers so complete the Cost of Goods Sold 2 Jan. 15 Purchase 8 Jan. 15 PurchaseExplanation / Answer
Answer 1. FIFO Method Value of Ending Inventory Date Units Unit Cost Total Cost 20-Jan 33 30.00 990 15-Jan 11 22.00 242 Total 44 1,232 Answer 2. LIFO Method Value of Ending Inventory Date Units Unit Cost Total Cost 1-Jan 20 20.00 400 15-Jan 24 22.00 528 Total 44 928 Answer 3. Average Cost Per Unit = $1,984 (Cost of goods available for sale) / 80 Units ( Units Available for Sale) Average Cost Per Unit = $24.80 per Unit (Approx.) Value of Ending Inventory = 44 Units X $24.80 per unit Value of Ending Inventory = $1,091.20 Answer 4. Cost of Goods Sold: FIFO LIFO Wtd. Avg. Beginning Inventory 400.00 400.00 400.00 Add: Purchases 1,584.00 1,584.00 1,584.00 Cost of Goods Available for Sale 1,984.00 1,984.00 1,984.00 Less: Ending Inventory (1,232.00) (928.00) (1,091.20) Cost of Goods Sold 752.00 1,056.00 892.80
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