Assume 1,090 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

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1.00K viewsOctober 13, 2016

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Darshita 6.14K October 13, 2016 0 Comments

In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 340 units at $10 on January 1, (2) 580 units at $11 on January 8, and (3) 880 units at $12 on January 29.

Assume 1,090 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.)

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1 Answer

score 0 · Answer 1 · 2016-10-13T12:07:53+00:00

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

the cost of goods available for sale, ending inventory, and cost of goods sold under the (a) FIFO, (a periodic inventory system is used.

	Purchase			Sold			Closing balance
	unit	per unit	total				210	11	2310
Purchase	340	10	3400	340	10	3400	880	12	10560
Purchase	580	11	6380	370	11	4070	1090		12870
Purchase	880	12	10560
	1800		20340

the cost of goods available for sale, ending inventory, and cost of goods sold under the (b) LIFO, a periodic inventory system is used.

		Purchase			Sold			Closing balance
Date		unit	per unit	total
1-Jan	Purchase	340	10	3400	710	12	8520	340	10	3400
8-Jan	Purchase	580	11	6380				580	11	6380
12-Jan	Purchase	880	12	10560				170	12	2040
		1800		20340				1090		11820

the cost of goods available for sale, ending inventory, and cost of goods sold under the (c) weighted average cost flow assumptions. Assume a periodic inventory system is used.

		Purchase			Sold			Closing balance
Date		unit	per unit	total
1-Jan	Purchase	340	10	3400	710	11.3	8023	1090	11.3	12317
8-Jan	Purchase	580	11	6380
12-Jan	Purchase	880	12	10560
		1800	11.3	20340	710	11.3	8023	1090	11.3	12317

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