Inventory Costing Methods-Periodic Method Merritt Company uses the periodic inve

Question

Inventory Costing Methods-Periodic Method
Merritt Company uses the periodic inventory system. The following May data are for an item in Merritt's inventory:

Calculate the cost of goods sold for May and ending inventory at May 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.

Do not round until your final answers. Round your final answers to the nearest dollar.

May 1 Beginning inventory 150 units @ $30 per unit 12 Purchased 100 units @ $35 per unit 16 Sold 180 units. 24 Purchased 170 units @ $38 per unit

Explanation / Answer

Calculate the cost of goods sold for May and ending inventory at May 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.

a First-in, First-out: Ending inventory (170*38+70*35) 8910 Cost of goods sold (150*30+30*35) 5550 b Last-in, first-out: Ending inventory (150*30+90*35) 7650 Cost of goods sold (14460-7650) 6810 c Weighted-average cost: Ending Inventory (14460/420*240) 8263 Cost of Goods Sold (14460/420*180) 6197

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