Specific Identification, FIFO, LIFO, and Weighted-Average Swing Company\'s begin
ID: 2603368 • Letter: S
Question
Specific Identification, FIFO, LIFO, and Weighted-Average
Swing Company's beginning inventory and purchases during the fiscal year ended September 30, 20-2, were as follows:
Use the following information for the specific identification method.
There are 1,300 units of inventory on hand on September 30, 20-2. Of these 1,300 units:
Required:
Calculate the total amount to be assigned to cost of goods sold for the fiscal year ended September 30, 20-2, and ending inventory on September 30, 20-2, under each of the following periodic inventory methods. For the weighted-average method, round the average unit cost to two decimal places. Round all final answers to the nearest dollar.
Units Unit Price Total Cost October 1, 20-1 Beginning inventory 390 $20.5 $7,995 October 18 1st purchase 490 21 10,290 November 25 2nd purchase 220 22 4,840 January 12, 20-2 3rd purchase 300 23.5 7,050 March 17 4th purchase 910 25 22,750 June 2 5th purchase 810 25.5 20,655 August 21 6th purchase 200 26 5,200 September 27 7th purchase 690 27 18,630 4,010 $97,410Explanation / Answer
Specific Identification Inventory Method COST OF GOODS SOLD COST OF ENDING INVENTORY Units Unit Price Total Units Unit Price Total Beginning inventory 390 $20.50 $7,995 0 $20.50 $0 1st purchase 390 21.00 $8,190 100 21.00 $2,100 2nd purchase 220 22.00 $4,840 0 22.00 $0 3rd purchase 100 23.50 $2,350 200 23.50 $4,700 4th purchase 810 25.00 $20,250 100 25.00 $2,500 5th purchase 410 25.50 $10,455 400 25.50 $10,200 6th purchase 0 26.00 $0 200 26.00 $5,200 7th purchase 390 27.00 $10,530 300 27.00 $8,100 Total 2710 $64,610 1300 $32,800 Alternative calculation if given Cost of goods available for sale $97,410 Cost of goods available for sale $97,410 goods available for sale and cost Less cost of ending inventory -32,800 Less cost of goods sold -64,610 of goods sold or ending inventory. Cost of goods sold $64,610 Cost of ending inventory $32,800 FIFO Inventory Method COST OF GOODS SOLD COST OF ENDING INVENTORY Units Unit Price Total Units Unit Price Total Beginning inventory 390 $20.50 $7,995 0 $20.50 $0 1st purchase 490 21.00 $10,290 0 21.00 $0 2nd purchase 220 22.00 $4,840 0 22.00 $0 3rd purchase 300 23.50 $7,050 0 23.50 $0 4th purchase 910 25.00 $22,750 0 25.00 $0 5th purchase 400 25.50 $10,200 410 25.50 $10,455 6th purchase 0 26.00 $0 200 26.00 $5,200 7th purchase 0 27.00 $0 690 27.00 $18,630 Total 2710 $63,125 1300 $34,285 Alternative calculation if given Cost of goods available for sale $97,410 Cost of goods available for sale $97,410 goods available for sale and cost Less cost of ending inventory -34,285 Less cost of goods sold -63,125 of goods sold or ending inventory. Cost of goods sold $63,125 Cost of ending inventory $34,285 LIFO Inventory Method COST OF GOODS SOLD COST OF ENDING INVENTORY Units Unit Price Total Units Unit Price Total Beginning inventory 0 $20.50 $0 390 $20.50 $7,995 1st purchase 0 21.00 $0 490 21.00 $10,290 2nd purchase 0 22.00 $0 220 22.00 $4,840 3rd purchase 100 23.50 $2,350 200 23.50 $4,700 4th purchase 910 25.00 $22,750 0 25.00 $0 5th purchase 810 25.50 $20,655 0 25.50 $0 6th purchase 200 26.00 $5,200 0 26.00 $0 7th purchase 690 27.00 $18,630 0 27.00 $0 Total 2710 $69,585 1300 $27,825 Alternative calculation if given Cost of goods available for sale $97,410 Cost of goods available for sale $97,410 goods available for sale and cost Less cost of ending inventory -27,825 Less cost of goods sold -69,585 of goods sold or ending inventory. Cost of goods sold $69,585 Cost of ending inventory $27,825 Weighted-Average Method $97,410 (cost of units available for sale) ÷ 4010 (units available for sale) = $24.29 weighted-average cost per unit The cost of goods sold and the cost of the end-of-period inventory are calculated as follows: Cost of goods sold = 2710 units @ $24.29 = $ 65,830 rounded to upper 10th Cost of ending inventory = 1300 units @ $24.29 = 31,580 rounded to upper 10th Total 4010 units = $97,410 Cost of Goods Sold Cost of Ending Inventory 1. FIFO $ 63,125 $ 34,285 2. LIFO $ 69,585 $ 27,825 3. Weighted-average $ 65,830 $ 31,580 4. Specific identification $ 64,610 $ 32,800
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.