attempt 1883124&page; 20 # College Students\' E Course: ACC111.D E Menu QU ION 2

Question

attempt 1883124&page; 20 # College Students' E Course: ACC111.D E Menu QU ION 21 Answer sa Points out of 20.00 P Flag question Inventory Costing Methods-Periodic Method Merritt Company uses the periodic inventory system. The following May data are for an item in Merritt's inventory May 1 Beginning inventory 150 units e $30 per unit 12 Purchased 16 Sold 24 Purchased 100 units e $35 per unit 180 units. 170 units @ $38 per unit Calculate the cost of goods sold for May and ending inventory at May 31 using (a) firstin, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Do not round until your final answers. Round your final answers to the nearest dollar. First-in, First-out Ending Inventory

Explanation / Answer

Unit of goods available for sale = 150+100+170 = 420 Units

Cost of goods available for sale = (150*30+100*35+170*38) = $14460

a) First in first out

Ending inventory = (170*38+70*35) = 8910

Cost of goods sold = 14460-8910 = 5550

b) Last in first out :

Ending inventory = (150*30+90*35) = $7650

Cost of goods sold = 14460-7650 = $6810

c) Weighted average cost :

Ending inventory = 14460/420*240 = $8263

Cost of goods sold = 14460-8263 = $6197

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