M7-6 Calculating Cost of Goods Available for Sale, Ending Inventory, Sales, Cost
ID: 2511933 • Letter: M
Question
M7-6 Calculating Cost of Goods Available for Sale, Ending Inventory, Sales, Cost of Goods Sold, and Gross Profit under Periodic FIFO, LIFo. and Weighted Average Cost [LO 7-3] The following are the transactions for the month of July. Unit Units Unit Cost Selling Price July 1 Beginning Inventory41 July 13 Purchase July 25 Solo $10 205 12 (100) $16 July 31 Ending Inventory 146 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under (a) FIFO, (b) LIFO, and (c) weighted average cost. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places and your final answers to nearest whole dollar amount.)Explanation / Answer
Answer
FIFO
Units
Cost per unit
Total
Beginning Inventory
41
$ 10.00
$ 410.00
Purchases:
July 13
205
$ 12.00
$ 2,460.00
Goods Available for Sale
246
$ 2,870.00
Cost of Goods Sold
Units from Beginning Inventory
41
$ 10.00
$ 410.00
Units from July 13 Purchases
59
$ 12.00
$ 708.00
total cost of Goods Sold
100
$ 1,118.00
Ending Inventory
146
$ 1,752.00
Sales [100 units x $16]
$ 1,600.00
(-) Cost of Goods Sold
$ 1,118.00
Gross Profits
$ 482.00
LIFO
Units
Cost per unit
Total
Beginning Inventory
41
$ 10.00
$ 410.00
Purchases:
July 13
205
$ 12.00
$ 2,460.00
Goods Available for Sale
246
$ 2,870.00
Cost of Goods Sold
Units from Beginning Inventory
0
$ 10.00
$ -
Units from July 13 Purchases
100
$ 12.00
$ 1,200.00
total cost of Goods Sold
100
$ 1,200.00
Ending Inventory
146
$ 1,670.00
Sales [100 units x $16]
$ 1,600.00
(-) Cost of Goods Sold
$ 1,200.00
Gross Profits
$ 400.00
Weighted Average
Units
Cost per unit
Total
Beginning Inventory
41
$ 10.00
$ 410.00
Purchases:
205
$ 12.00
$ 2,460.00
Goods Available for Sale
246
$ 11.67 [2870/246]
$ 2,870.00
Cost of Goods Sold
100
$ 11.67
$ 1,166.67
Ending Inventory
146
$ 11.67
$ 1,703.33
Sales [100 units x $16]
$ 1,600.00
(-) Cost of Goods Sold
$ 1,166.67
Gross Profits
$ 433.33
FIFO
Units
Cost per unit
Total
Beginning Inventory
41
$ 10.00
$ 410.00
Purchases:
July 13
205
$ 12.00
$ 2,460.00
Goods Available for Sale
246
$ 2,870.00
Cost of Goods Sold
Units from Beginning Inventory
41
$ 10.00
$ 410.00
Units from July 13 Purchases
59
$ 12.00
$ 708.00
total cost of Goods Sold
100
$ 1,118.00
Ending Inventory
146
$ 1,752.00
Sales [100 units x $16]
$ 1,600.00
(-) Cost of Goods Sold
$ 1,118.00
Gross Profits
$ 482.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.