new textbook is published in the spring of 2014. Your campus bookstore buys 400
ID: 2503158 • Letter: N
Question
new textbook is published in the spring of 2014. Your campus bookstore buys 400 copies at $70 each in June, an additional 1,000 copies in August at $72 each, and 600 copies in December at $75 each. At the end of December 2014, the bookstore has sold 1,900 copies of the text.
Calculate the cost of goods sold and the cost of ending inventory under the weighted average cost method. (Do not round intermediate calculations.)
Calculate the cost of goods sold and the cost of ending inventory under the FIFO method.
Calculate the cost of goods sold and the cost of ending inventory under the LIFO method.
new textbook is published in the spring of 2014. Your campus bookstore buys 400 copies at $70 each in June, an additional 1,000 copies in August at $72 each, and 600 copies in December at $75 each. At the end of December 2014, the bookstore has sold 1,900 copies of the text.
Explanation / Answer
A]WEIGTHED AVERAGE COST OF ONE COPY = [(400*70)+(1000*72)+(600*75)]/(400+1000+600]
= 145000/2000
=72.5 PER COPY
COST OF GOODS SOLD UNDER WEIGHTED AVERAGE SOST = 1900*72.5
= $137750
COST OF ENDING INVENTORY = (2000-1900)*72.50
= $7250
B]COST OF ENDING INVENTORY UNDER FIFO METHOD = 100*75
= $7500
COST OF GOODS SOLD UNDER FIFO METHOD = 145000-7500
=$137500
C] COST OF ENDING INVENTORY UNDER LIFO METHOD = 100*70
= $7000
COST OF GOODS SOLD UNDER LIFO METHOD = 145000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.