Exercise 5-14A Periodic: Cost flow assumptions LO P3 Lopez Company reported the

Question

Exercise 5-14A Periodic: Cost flow assumptions LO P3 Lopez Company reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 600 units-200 from each of the last three purchases Jan. 1 Beginning inventory Mar. 7 Purchase 300 units$4.00$1,200 640 units $4.25 2,720 1,280 units$5.006,400 Oct. 3 Purchase1.160 units e $7.008.120 720 units$8.90 6,408 24,848 July 28 Purchase Dec. 19 Purchase Totals 4,100 units Determine the cost assigned to ending inventory and to cost of goods sold for the following. (Do not round intermediate calculations and round your answers to 2 decimal places.) Ending Cost of G (a) Specific identification b) Weighted average G) FIFO (d) LIFO

Explanation / Answer

Answer

Specific Identification

Cost of Goods available for sale

Cost of Goods Sold

Ending Inventory

Units

Cost/unit

COG for sale

Units sold

Cost/unit

COGS

Units

Cost/unit

Ending inventory

Beginning Inventory

300

4

1200

300

4

1200

0

4

0

Purchases:

Mar-07

640

4.25

2720

640

4.25

2720

0

4.25

0

Jul-28

1280

5

6400

1080

5

5400

200

5

1000

Oct-03

1160

7

8120

960

7

6720

200

7

1400

Dec-19

720

8.9

6408

520

8.9

4628

200

8.9

1780

0

0

0

0

TOTAL

4100

24848

3500

20668

600

4180

Average Method

Cost of Goods available for sale

Cost of Goods Sold

Ending Inventory

Units

Cost/unit

COG for sale

Units sold

Cost/unit

COGS

Units

Cost/unit

Ending inventory

Beginning Inventory

300

4

1200

Purchases:

Mar-07

640

4.25

2720

Jul-28

1280

5

6400

Oct-03

1160

7

8120

Dec-19

720

8.9

6408

TOTAL

4100

6.060488

24848

3500

6.060488

21212

600

6.060488

3636

FIFO

Cost of Goods available for sale

Cost of Goods Sold

Ending Inventory

Units

Cost/unit

COG for sale

Units sold

Cost/unit

COGS

Units

Cost/unit

Ending inventory

Beginning Inventory

300

4

1200

300

4

1200

0

4

0

Purchases:

Mar-07

640

4.25

2720

640

4.25

2720

0

4.25

0

Jul-28

1280

5

6400

1280

5

6400

0

5

0

Oct-03

1160

7

8120

1160

7

8120

0

7

0

Dec-19

720

8.9

6408

120

8.9

1068

600

8.9

5340

TOTAL

4100

24848

3500

19508

600

5340

LIFO

Cost of Goods available for sale

Cost of Goods Sold

Ending Inventory

Units

Cost/unit

COG for sale

Units sold

Cost/unit

COGS

Units

Cost/unit

Ending

inventory

Beginning Inventory

300

4

1200

4

0

300

4

1200

Purchases:

Mar-07

640

4.25

2720

340

4.25

1445

300

4.25

1275

Jul-28

1280

5

6400

1280

5

6400

0

5

0

Oct-03

1160

7

8120

1160

7

8120

0

7

0

Dec-19

720

8.9

6408

720

8.9

6408

0

8.9

0

TOTAL

4100

24848

3500

22373

600

2475

Ending Inventory

Cost of Goods Sold

Specific Identification

$ 4,180.00

$ 20,668.00

Weighted Average

$ 3,636.29

$ 21,211.71

FIFO

$ 5,340.00

$ 19,508.00

LIFO

$ 2,475.00

$ 22,373.00

Specific Identification

Cost of Goods available for sale

Cost of Goods Sold

Ending Inventory

Units

Cost/unit

COG for sale

Units sold

Cost/unit

COGS

Units

Cost/unit

Ending inventory

Beginning Inventory

300

4

1200

300

4

1200

0

4

0

Purchases:

Mar-07

640

4.25

2720

640

4.25

2720

0

4.25

0

Jul-28

1280

5

6400

1080

5

5400

200

5

1000

Oct-03

1160

7

8120

960

7

6720

200

7

1400

Dec-19

720

8.9

6408

520

8.9

4628

200

8.9

1780

0

0

0

0

TOTAL

4100

24848

3500

20668

600

4180

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