Periodic Inventory by three methods; cost of goods sold The units of an item ava

Question

Periodic Inventory by three methods; cost of goods sold The units of an item available 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 periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dolla 30 units at $90 70 units at $102 10 units at $106 90 units at $108 Inventory MethodEnding Inventory Cost of Goods Sold rst-in, first-out (FIFO) Last-in, frst-out (LFO Weighted average cost

Explanation / Answer

Calculate ending inventory and cost of goods sold :

Ending inventory Cost of goods sold First in First out 80*108 = 8640 (30*90+70*102+10*106+10*108) = 11980 Last in First out (30*90+50*102) = 7800 (20620-7800) = 12820 Weighted average cost (20620/200*80) = 8248 (20620/200*120) = 12372

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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