Grades: View Mojo lndustries Tracks T × Cezto.mheducation.com/hm.tpx PB7-1 Analy

Question

Grades: View Mojo lndustries Tracks T × Cezto.mheducation.com/hm.tpx PB7-1 Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System LO 7-3] Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, January 31. The inventory's selling price is S9 per unit. Units Total Cost 260 (200) 310 (150) Unit Cost nventory, January 1 Sale, January 10 Purchase, January 12 Sale, January 17 Purchase, January 26 $2.50 3.00 4.00 $650 930 220 Assuming that for Specific identification method (item 1dthe January 10 sale was from the beginning inventory and the January 17 sale was from the January 12 purchase. Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January 31 under each of the following inventory costing methods: (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) ilable for Sale Ending Inventory Cost of Goods ?$ Amount of Goods Sold 34 S 1,120 a Weighted average cost b. First-n, first-out c. Last-in, first-out d. Specific identification 1,008 O Type here to search D e 7:32 PM 6/25/2018 1

Explanation / Answer

Calculate following :

Amount of goods available for sale Ending inventory cost of goods sold a. Weighted average cost 1800 (1800/625*275) = 792 1800-792 = 1008 b First in first out 1800 (55*4+220*3) = 880 1800-880 = 920 c Last in first out 1800 (260*2.5+15*3) = 695 1800-695 = 1105 d Specific identification 1800 1800-950 = 850 (200*2.5+150*3) = 950

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