Periodic inventory by three methods; cost of The units of an item available for

Question

Periodic inventory by three methods; cost of The units of an item available for sale during the year method, un u inventory, 4912 goods were as follows0 Jan. 1 Mar. 10 Aug. 30 Dec. 12 Inventory180 units at $108 Purchase224 units at $110 Purchase 200 units at $116 Purchase 196 units at $120 There are 208 units of the item in the physical inventory at December a1 T tory system is used. Determine the ending inventory cost and the cost of methods, presenting your answers in the following form: 31. The periodic inven goods sold by three Inventory Method A. First-in, first-out B. Last-in, first-out C. Weighted average cost Ending InventoryCost of Goods Sold

Explanation / Answer

Units sold = 180 + 224 + 200 + 196 - 208 = 592

First in First out

180 * 108 = 19,440

224 * 110 = 24,640

180 * 108 = 19,440

224 * 110 = 24,640

200 * 116 = 23,200

180 * 108 = 19,440

224 * 110 = 24,640

200 * 116 = 23,200

196 * 120 = 23,520

180 * 108 = 19,440

224 * 110 = 24,640

188 * 116 = 21,808

12 * 116 = 1,392

196 * 120 = 23,520

Cost of goods sold = 19,440 + 24,640 + 21,808 = 65,888

Ending Inventory = 1,392 + 23,520 = 24,912

Last in first out

180 * 108 = 19,440

224 * 110 = 24,640

180 * 108 = 19,440

224 * 110 = 24,640

200 * 116 = 23,200

180 * 108 = 19,440

224 * 110 = 24,640

200 * 116 = 23,200

196 * 120 = 23,520

196 * 120 = 23,520

200 * 116 = 23,200

196 * 110 = 21,560

180 * 108 = 19,440

28 * 110 = 3,080

Cost of goods sold = 23,520 + 23,200 + 21,560 = 68,280

Ending inventory = 19,440 + 3,080 = 22,520

Cost per unit under Weighted average = Cost of units available for sale / Number of units available for sale

= [(180 * 108) + (224 * 110) + (200 * 116) + (196 * 120)] / (180 + 224 + 200 + 196)

= 90,800 / 800

= 113.5

Cost of goods sold = 592 * 113.5 = 67,192

Ending inventory = 208 * 113.5 = 23,608

Date Particulars Units * Unit cost Ending inventory Jan. 1 Inventory 180 * 108 = 19,440 180 * 108 = 19,440 Mar. 10 Purchases 224 * 110 = 24,640

180 * 108 = 19,440

224 * 110 = 24,640

Aug. 30 Purchases 200 * 116 = 23,200

180 * 108 = 19,440

224 * 110 = 24,640

200 * 116 = 23,200

Dec. 12 Purchases 196 * 120 = 23,520

180 * 108 = 19,440

224 * 110 = 24,640

200 * 116 = 23,200

196 * 120 = 23,520

180 * 108 = 19,440

224 * 110 = 24,640

188 * 116 = 21,808

12 * 116 = 1,392

196 * 120 = 23,520

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