(of 19) 4 value: 0.57 points M7-8 Calculating Cost of Goods Available for Sale,

ID: 2554964 • Letter: #

Question

(of 19) 4 value: 0.57 points M7-8 Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under Periodic FIFO, LIFO, and Weighted Average Cost LO in the following order. (1) 210 units at $9 on January 1, (2) 570 units at $10 on January 8, and (3) 870 units at $11 on January 29 Assume 1,080 units are on hand at the end of the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under the (a) FIFO, (b) L?FO, and (c) weighted average cost flow assumptions. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places.) FIFO LIFO Ending Inventory Cost of Goods Sold References eBook & Resources

Explanation / Answer

Solution:

FIFO

LIFO

Weighted average

Cost of goods Available for Sale

17,160

Ending inventory

11,670

10,890

11,232

COGS

5,490

6,270

5,928

Working:

Jan-01

210

1890

Jan-08

570

5700

Jan-29

870

9570

1650

17160

Ending inventory: 1080 units

FIFO: 870*11 = 9,570; 210*10= 2,100; 9,570 + 2,100 = 11,670

LIFO: 210*9= 1890; 570*10=5700; 300*11=3300; 1890+5700+3300= 10,890

Weighted average: 1080*17,160/1,650 = 11,232

COGS: 570 UNITS

FIFO: 210*9 = 1,890; 360*10= 3,600; 1,890+3,600= 5,490

LIFO: 570*11 = 6,270

Weighted average: 570 * 17,160/1,650 = 5,928