Chapter 6 Exercises- Module 2 – Accounting 101 Inventory Costing Methods-Periodi
ID: 2543444 • Letter: C
Question
Chapter 6 Exercises- Module 2 – Accounting 101
Inventory Costing Methods-Periodic Method The following information is for the Bloom Company for 2012; the company sells just one product:
Units Unit Cost
Beginning Inventory 200 $150
Purchases: Feb. 11 500 $154
May 18 400 156
Oct. 23 100 160
At December 31, 2012, there was an ending inventory of 360 units. Assume the use of the periodic inventory method. Calculate the value of ending inventory and the cost of goods sold for the year using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost method.
Do not round until your final answers. Round your answers to the nearest dollar.
A. First-in, First-out:
Ending Inventory $
Cost of goods sold $
B. Last-in, first-out:
Ending Inventory $
Cost of goods sold $
C. Weighted Average
Ending Inventory $
Cost of goods sold $
Explanation / Answer
Calculate the value of ending inventory and the cost of goods sold for the year
First-in, First-out: Ending Inventory (100*160+260*156) 56560 Cost of goods sold (200*150+500*154+140*156) 128840 Last-in, first-out: Ending Inventory (200*150+160*154) 54640 Cost of goods sold (185400-54640) 130760 Weighted Average Ending Inventory (185400/1200*360) 55620 Cost of goods sold (185400-55620) 129780Related Questions
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