v2.cengagenow.com Cengage CengageNOWv2 | Online teaching ) eBook - n« Show Me Ho
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v2.cengagenow.com Cengage CengageNOWv2 | Online teaching ) eBook - n« Show Me How Calculator : Periodic inventory by three methods; cost of goods sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory Mar. 10 Purchase Aug. 30 Purchase Dec. 12 Purchase There are 40 units of the item in the physical inventory at December 31. The periodic inventory sy Determine the ending inventory cost and the cost of goods sold by three methods. Round interim c 40 units at $128 50 units at $136 30 units at $142 80 units at $148 the nearest whole dollar. Cost of Ending Inventory and Cost of Goods Sold Ending Inventory Cost of Goods Sold Inventory Method First-in, first-out (FIFO) Last-in, first-out (LIFO) Weighted average cost Check My Work Email InstructorS All work saved.Explanation / Answer
Goods available for sales = (Beginning inventory + Purchase) = 40 +50+30 + 80 = 200 units
Goods Sold = Goods available for sales - Closing inventory = 200 - 40 = 160 units
Ending Inventory value & COGS under FIFO
COGS = (40 units * $128) + (50 units * $136) + (30 units * $142) + (40 units * $148) = $22,100
Ending Inventory = (40 units * $148) = $5,920
Ending Inventory value & COGS under LIFO
COGS = (80 units * $148) + (30 units * $142) + (50 units * $136) = $22,900
Ending Inventory = (40 units * $128) = $5,120
Ending Inventory value & COGS under Weighted Average cost
Weighted Average cost per unit = (40 units * $128) + (50 units * $136) + (30 units * $142) + (80 units * $148) / 200
= 28,020 / 200 = $140.10 per unit
COGS = 160 units * $140.10 = $22,416
Ending inventory = 40 units * $140.10 = $5,604
Inventory Method Ending Inventory ($) Cost of Goods Sold ($) FIFO 22,100 5,920 LIFO 22,900 5,120 Weighted - average cost 22,416 5,604Related Questions
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