The inventory quantities, purchases, and sales of this product for the most rece

Question

The inventory quantities, purchases, and sales of this product for the most recent year are as follows: Inventory, January Purchase, Feb 17 Purchase, June 15 Purchase, Oct 15 Purchase, Dec 18 Goods available for sale Units Sold Inventory. December 31 INSTRUCTIONS Assume Mike's sold all of the June 15 purchases, and 100 cases each from the January 1 beginning inventory, die October 15 purchase, and the December 18 purchase. Using periodic costing procedures, compute the cost of the December 31 inventory and the cost of goods sold for the Spartan Stein dunng the year under each of the following cost flow assumptions (show your work - Don t plug). Last - in, first - out First - in, first - out Weighted Average cost (round to the nearest dollar, except unit cost) Specific Identification

Explanation / Answer

1) LIFO COGS = 100x (Dec 18) + 150x (Oct 15) + 200x (June 15) + 50x (Feb 17) = 100(30) + 150(28) + 200(28) + 50(26) = 14 100 2) FIFO COGS = 125x (Jan) + 100x (Feb 17) + 200x (June 15) + 75x (Oct 15) = 125x (23) + 100x (26) + 200x (28) + 75x (28) = 13 175 3) WA Weighted average of each unit = Total cost / Total units = 18275/675 = 27.0740741 COGS = Average cost x Units sold = 27.0740741 * 500 = 13 537 4) Specific ID COGS = 200x (June 15) + 100x (Jan) + 100x (Oct 15) + 100x (Dec 18) = 200(28) + 100(23) + 100(28) + 100(30) = 13 700

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