M7-6 Calculating Cost of Goods Available for Sale, Ending Inventory, Sales, Cost

Question

M7-6 Calculating Cost of Goods Available for Sale, Ending Inventory, Sales, Cost of Goods Sold, and Gross Profit under Periodic FIFO, LIFO, and Welghte The following are the transactions for the month of July Unit Units Unit Cost July 1 Beginning Inventory July 25 Sold July 31 Ending Inventory 52 $10 26011 $14 212 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

Explanation / Answer

ReqA: FIFO PERIODIC UNITS CPU TOTAL Beginning Inventory 52 10 520 Purchases 13-Jul 260 11 2860 Goods Available for Sale 312 3380 Cost of Goods sold: Units from Beginning 52 10 520 Units from Purchase 48 11 528 Total cost of Goods sold 100 1048 Ending Inventory 212 2332 FIFO PERIODIC Sales(100 units@14) 1400 Less: Cost of Goods sold 1048 Gross Profit 352 ReqB: LIFO PERIODIC UNITS CPU TOTAL Beginning Inventory 52 10 520 Purchases 13-Jul 260 11 2860 Goods Available for Sale 312 3380 Cost of Goods sold: Units from Beginning 0 0 Units from Purchase 100 11 1100 Total cost of Goods sold 100 1100 Ending Inventory 212 2280 LIFO PERIODIC Sales(100 units@14) 1400 Less: Cost of Goods sold 1100 Gross Profit 300 ReqC: Weighted Average Periodic UNITS CPU TOTAL Beginning Inventory 52 10 520 Purchases 13-Jul 260 11 2860 Goods Available for Sale 312 10.83 3380 Cost of Goods sold: 100 10.83 1083 Ending Inventory 212 2297 Weighted Average PERIODIC Sales(100 units@14) 1400 Less: Cost of Goods sold 1083 Gross Profit 317

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