1) What is the ending inventory on a FIFO basis? 2) What is the cost of goods so

Question

1) What is the ending inventory on a FIFO basis? 2) What is the cost of goods sold on a FIFO basis? 3) What is the ending invest on a LIFO basis? 4) Ehat is the cost of goods sold on a LIFO basis? 5) What is the ending inventory on a weighted average basis? The following inventory records are from Blitzer Company, which keeps its inventory on a periodic basis: Beginning Inventory 11/1 Purchase: 11/12 Purchase: 11/18 Purchase: 11/23 Unlts Unit Cost 500 6.20 300 1,000 6.30 200 6.40 There were 1,400 units sold during the period. Use this information to answer the following question:

Explanation / Answer

Schedule :

a) Ending inventory FIFO = (200*6.4+400*6.30) = 3800

b) Cost of goods sold under FIFO = (12440-3800) = 8640

c) Ending inventory LIFO = (500*6+100*6.20) = 3620

d) Cost of goods sold under LIFO = 12440-3620 = 8820

e) Ending inventory under weighted average = (12440/2000*600) = 3732

f) Cost of goods sold under weighted average = 12440-3732 = 8708

Unit Unit cost Total cost Beginning inventory 500 6 3000 Purchase 11/12 300 6.20 1860 Purchase 11/18 1000 6.30 6300 Purchase 11/23 200 6.40 1280 Total 2000 12440

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