Date event Number of units Unit cost Total cost Dec. 1 Beg. Inventory 500 $10 $5
ID: 2379097 • Letter: D
Question
Date
event
Number of units
Unit cost
Total cost
Dec. 1
Beg. Inventory
500
$10
$5,000
Dec. 8
purchase
600
11
6,600
Dec. 13
purchase
300
12
3,600
Dec. 15
Sale
750
Dec. 24
purchase
300
13
3,900
Dec. 28
purchase
400
15
6,000
Dec. 30
sale
650
How do you calculate Cost of goods sold and ending inventory using the weighted average, FIFO, and LIFO inventory costing methods?
Weighted Ave. Cost
FIFO
LIFO
Ending inventory
Cost of Goods Sold
Date
event
Number of units
Unit cost
Total cost
Dec. 1
Beg. Inventory
500
$10
$5,000
Dec. 8
purchase
600
11
6,600
Dec. 13
purchase
300
12
3,600
Dec. 15
Sale
750
Dec. 24
purchase
300
13
3,900
Dec. 28
purchase
400
15
6,000
Dec. 30
sale
650
Explanation / Answer
Inventory Cost = 1,000 units X $8 each = $8,000 Remember that the last units in are sold first; therefore, we leave the oldest units for ending inventory.
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