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 270 units. Beginning Inventory January 1 units $220 unit cost $85 total cost $18,700 Purchase January 15 units 480 unit cost 95 total cost 45,600 Purchase January 24 units 200 unit cost 115 total cost 23,000 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory.

Explanation / Answer

Oahu Kiki All Amounts in $ Calculation of Cost of Goods Sold and Closing Inventory - Units and Value Date Particulars Qty Rate Value per unit $ $ 01-Jan Opening Inventory 220 85 18700 15-Jan Purchase 480 95 45600 24-Jan Purchase 200 115 23000 31-Jan Cost of Goods Sold -200 115 -23000 31-Jan Cost of Goods Sold -70 95 -6650 29650 Cost of Goods Sold 31-Jan Ending Inventory 410 95 38950 31-Jan Ending Inventory 220 85 18700 57650 Closing Inventory

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