F8 A. 1 Better Bottles, Inc., uses a periodic inventory system and has the follo
ID: 2540213 • 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
FIFO:
Ending inventory:
Jan 20 33 units * $30 $990
Jan 15 11 units * $22 $242
$1232
Cost of goods sold:
Jan 1 20 units * $20 $400
Jan 15 16 units * $22 $352
$752.
LIFO:
Ending inventory:
Jan 1 20 units * $20 $400
Jan 15 24 units * $22 $528
$928.
Cost of goods sold:
Jan 15 3 units * $22 $66
Jan 20 33 units * $30 $990
$1056.
Weighted average method:
weighted average rate per unit = $1984 / 80 units
= $24.8
Ending inventory:
44 units * $24.8 = $1091
Cost of goods sold:
36 units * $24.8 = $893.
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