Oahu Kiki tracks the number of units purchased and sold throughout each accounti

Question

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki's records show the following for the month of January. Sales totaled 280 units. Required 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. Ending Inventory units 3. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.

Explanation / Answer

Number of goods available for sale = Beginning inventory + purchase

= 120 + 380 + 200

= 700 units

Cost of goods available for sale = $10200 + $36100 + $23000

= 69300

2. Number of units in ending inventory = Beginning inventory + purchase – sale

= 120 + 380 + 200 - 280

= 420 units

3. FIFO

Cost of ending inventory = 200 *115 + 220*95 = 43900

Cost of goods sold = 63900 – 43900 = 20000

LIFO

Cost of ending inventory = 120 *85 + 300*95 = 38700

Cost of goods sold = 63900 – 38700 = 30600

Weighted average cost

Cost of ending inventory = 420 *99 = 41580

Cost of goods sold = 63900 – 41580 = 27720

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.