Jackson Company provided the following data about its inventory for the month of
ID: 2559050 • Letter: J
Question
Jackson Company provided the following data about its inventory for the month of April. Use this information for the questions below.
Date
Transaction
April 1
Beginning inventory 300 units at $10
April 2
Sold 200 units at $24
April 3
Purchased 800 units at $12
April 14
Sold 500 units at $24
April 20
Purchased 500 units at $13
April 30
Sold 300 units at $25
Assume Jackson uses the periodic system of inventory. Calculate ending inventory and cost of goods sold using FIFO, LIFO, and weighted-average cost method. (Hint: First determine the number of units remaining in ending inventory.)
Date
Transaction
April 1
Beginning inventory 300 units at $10
April 2
Sold 200 units at $24
April 3
Purchased 800 units at $12
April 14
Sold 500 units at $24
April 20
Purchased 500 units at $13
April 30
Sold 300 units at $25
Explanation / Answer
Units Unit cost Total Beg inv. 300 10 3000 3-Apr 800 12 9600 20-Apr 500 13 6500 Total 1600 19100 Average cost=19100/1600= $11.9375 Ending inventory units=1600-200-500-300=600 FIFO: Ending inventory 7700 =(500*13)+(100*12) Cost of goods sold 11400 =19100-7700 LIFO: Ending inventory 6600 =(300*10)+(300*12) Cost of goods sold 12500 =19100-6600 Weighted average: Ending inventory 7162.5 or 7163 =600*11.9375 Cost of goods sold 11937.5 or $11937 =19100-7163
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