Question Help 10A. Read Books has the following transactions in August related t

Question

Question Help 10A. Read Books has the following transactions in August related to merchandise inventory (Click the icon to view the transactions.) a. Determine the cost of goods sold and ending merchandise inventory using the FIFO inventory costing method assuming Read Books uses the periodic inventory system. b. Determine the cost of goods sold and ending merchandise inventory using the LIFO inventory costing method assuming Read Books uses the periodic inventory system c. Determine the cost of goods sold and ending merchandise inventory using the weighted-average inventory costing method assuming Read Books uses the periodic inventory system. a., b., and c. Determine the cost of goods sold and ending merchandise inventory using the (a) FIFO inventory costing method, (b) LIFO inventory costing method, and (c) weighted-average inventory costing method assuming Read Books uses the periodic inventory system. (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar.) a. b. C. FIFO More Info LIFO Weighted-Average inning merchandise in Plus: Net cost of purchases Cost of goods available for sale Less: Ending merchandise inven Cost of goods sold Aug. 1Beginning merchandise inventory, 14 books $12 each 3 Sold 7 books $17 each 12 Purchased 12 books $16 each 15 Sold 8 books $17 each 20 Purchased 7 books@ $17 each 28 Sold 8 books $19 each Print Done

Explanation / Answer

CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER FIFO METHOD PURHASES COST OF GOODS SOLD CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Aug, 01 Opening Stock 14 Books 14 12 168 Aug, 03 Sales 7 Books 7 12 84 7 12 84 Aug, 12 Purchases 12 books 12 $16 $192 7 12 84 12 $16 $192 Aug, 15 Sold 8 Books 7 12 84 1 $16 $16 11 $16 $176 Aug, 20 Purchase 7 Books 7 $17 $119 11 $16 $176 7 $17 $119 Aug, 28 Sold 8 Books 8 $16 $128 3 $16 $48 7 $17 $119 Total 23 312 10 $167 Unit Amount COGS as per FIFO Method                    23.00 $312.00 CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER LIFO METHOD PURHASES COST OF GOODS SOLD CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Aug, 01 Opening Stock 14 Books 14 12 168 Aug, 03 Sales 7 Books 7 12 84 7 12 84 Aug, 12 Purchases 12 books 12 $16 $192 7 12 84 12 $16 $192 Aug, 15 Sold 8 Books 8 $16 $128 7 12 84 4 $16 $64 Aug, 20 Purchase 7 Books 7 $17 $119 7 12 84 4 $16 $64 7 $17 $119 Aug, 28 Sold 8 Books 7 $17 $119 1 $16 $16 7 12 84 3 $16 $48 Total 23 347 10 132 CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER Weighted Average Method Books Rate Amount Opening Inventory =                          14 $12 168 Purchase 12 th aug                          12 $16 192 Purchase 20 th aug                             7 $17 119                          33 479 Cost per unit = $ 479 / 33 Books =                               14.52 Per Books Closing inventory = $ 14.52 X 10 books =                            145.15 FIFO LIFO Weighted- Average Beginning Inventory = $168 $168 $                        168.00 Plus Net Cost of purchases $311 $311 $                        311.00 Cost of Goods Available For sAle $479 $479 $                        479.00 Less: Ending merchant inventory $167 $132 $                        145.15 Cost of Goods Sold $312 $347 $                        333.85

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