connect Chapter 7 Qutz Question 3 (of 6) value: 0.83 points M7-6 Calculating Cos

Question

connect Chapter 7 Qutz Question 3 (of 6) value: 0.83 points M7-6 Calculating Cost of Goods Available for Sale, Ending Inventory, Sales, Cost of C The following are the transactions for the month of July July 1 Beginning Inventory July 13 Purchase July 25 Sold 54 $10 270 12 (100) $16 July 31 Ending Inventory224 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under (a) FIFO, (b) LIFO and (c) weighted average cost Assume a periodic inventory system is used (Round Cost per Unit" to 2 decimal places and your final answers to nearest whole dollar amount.) (a)FIFO EIEO (Periodic) Cost per Total

Explanation / Answer

1)Cost of goods available for sale : Beginning inventory +purchase

   =[54*10]+[270*12]

    = 540+3240

    = 3780

units available for sale :54+270 =324

Average cost : 3780 /324 =11.67

[224*12]

2688

[54*10]+[(224-54beginning)*12]

540+2040

2580

224*11.67

2614

FIFO LIFO Average under FIFO units acquired first are sold first so ending inventory are left from last purchase Under LIFO units acquired last are sold first so ending inventory are left from initial balance sold at average cost Ending inventory

[224*12]

2688

[54*10]+[(224-54beginning)*12]

540+2040

2580

224*11.67

2614

cost of goods sold : [cost of goods available for sale -ending inventory] 3780-2688=1092 3780-2580=1200 3780-2614=1166 sales 100*16=1600 1600 1600 less:Cost of goods sold (1092) (1200) (1166) Gross profit 508 400 434

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