Aircard Corporation tracks the number of units purchased and sold throughout eac

Question

Aircard Corporation 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. The following are the transactions for the month of July July 1 July 5 July 13 July 17 July 25 July 27 Beginning Inventory Sold Purchased Sold Purchased Sold Units Unit Cost 2,000 $45 1,000 6,000 3,000 8,000 5,000 49 51 Calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircard uses (a) FIFO, (b) LIFO, or (c) weighted average cost. (Round "Cost per Unit" to 2 decimal places.) ig FIFO LIFO Average Cost Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold

Explanation / Answer

Calculate following :

Units available for sale = 2000+6000+8000 = 16000 Units

Cost of goods available for sale = 90000+294000+408000 = 792000

Ending inventory units = 16000-9000 = 7000

FIFO LIFO Weighted average cost Cost of goods available for sale 792000 792000 792000 Ending inventory (7000*51) = 357000 (2000*45+5000*49) = 335000 (792000/16000*7000) = 346500 Cost of goods sold 792000-357000 = 435000 792000-335000 = 457000 792000-346500 = 445500

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