Consider the following information for Maynor Company, which uses a periodic inv

Question

Consider the following information for Maynor Company, which uses a periodic inventory system TransactionUnits Unit CostTotal Cost January 1 Beginning Inventory 14 $64 March 28Purchase S 896 1,680 2,072 2,640 August 22 Purchase October 14 Purchase 24 28 70 74 80 Goods Available for Sale $7,288 The company sold 33 units on May 1 and 28 units on October 28. Required Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods. (Round the per unit cost to two decimal places and then round your answer to the nearest whole dollar.) a. FIFO: Ending Inventory Cost of Goods Sold 3,010 4,278 b. LIFO

Explanation / Answer

Answer to Part b.

The answer given by you is Incorrect. The Correct answer is as calculated:
Cost of Goods sold = (33 * $80) + (28 * $74)
Cost of Goods sold = $2,640 + $2,072
Cost of Goods sold = $4,712

Ending Inventory = Cost of Goods available for Sales – Cost of goods sold
Ending Inventory = $7,288 - $4,712
Ending Inventory = $2,576

Answer to Part c.

Weighted Average Cost per unit = Cost of goods available for Sales / Units available for Sale
Weighted Average Cost per unit = 7,288 / 99
Weighted Average Cost per unit = $73.62

Units Sold = 33 + 28 = 61 units
Cost of Goods sold = $73.62 * 61
Cost of Goods sold = $4,490.82 or $4,491

Ending Inventory = Cost of Goods available for Sales – Cost of goods sold
Ending Inventory = $7,288 - $4,491
Ending Inventory = $2,797

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