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In its first month of operations, Literacy for the Illiterate opened a new books

ID: 2584486 • Letter: I

Question

In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 420 units at $9 on January 1, (2) 600 units at $10 on January 8, and (3) 900 units at $11 on January 29.


Assume 1,120 units are on hand at the end of the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost flow assumptions. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places.)

In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 420 units at $9 on January 1, (2) 600 units at $10 on January 8, and (3) 900 units at $11 on January 29.


Assume 1,120 units are on hand at the end of the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost flow assumptions. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places.)

FIFO LIFO Weighted Average Cost Cost of Goods Available for Sale $19,680 $19,680 $19,680 Ending Inventory Cost of Goods Sold

Explanation / Answer

FIFO Method

Cost of goods sold

Ending inventory

LIFO Method

Cost of goods sold

Ending inventory

Weighted average cost method

Cost of goods sold

Ending inventory

Units Rate Amount Sale from beginning inventory 420 $    9 $ 3,780 Sale from Janaury 8th purchase 380 $ 10 $ 3,800 Cost of goods sold 800 $ 7,580
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