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 290 units.

Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.

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 290 units.

Explanation / Answer

(a) FIFO Method Purchases Quantity Price Amount Jan-01 140 80 11200.00 Jan-15 330 90 29700.00 Jan-24 250 110 27500.00 COST (A) 68400.00 Sales Sales 140 80 11200 150 90 13500 COST OF GOODS SOLD (B) 290 24700 COST OF ENDING INVENTORY (A) - ( B) 43700.00 (b) LIFO METHOD Purchases Quantity Price Amount Jan-01 140 80 11200.00 Jan-15 330 90 29700.00 Jan-24 250 110 27500.00 COST (A) 68400.00 Sales Sales 250 110 27500 40 90 3600 COST OF GOODS SOLD (B) 290 31100 COST OF ENDING INVENTORY (A) - ( B) 37300.00

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