number of units purchased and sold throughout each accounting period but applies

Question

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 330 units. Beginning Inventory Purchase Purchase Date Units Unit Cost Total Cost January 1 January 15 400 10040.C January 24 300 $27,000 120 36,000 Required 1. Calculate the number and cost of goods available for sale Number of Goods Available for Sale units Cost of Goods Available for Sale 2. Calculate the number of units in ending inventory Ending Invento units 3. Calculate the cost of ending inventory and dost of goods soid usin weighted average cost methods Cost of Ending Inventor Cost of Goods Sold FIFO LIFO Weighted Average Cost

Explanation / Answer

1)Number of goods available for sale = 300+400+300=1000

Cost of goods available for sale :27000+40000+36000=103000

2)Ending inventory =Number of goods available for sale -unit sold

      1000- 330

    = 670

3)under FIFO units acquired firs are sold first so ending inventory is left from last purchase

Under LIFO units acquired last are sold first so ending inventory is left from initial purchase

weighted average cost= 103000/1000 =$ 103 per unit

[300*120]+[370*100]

36000+37000

73000

103000-73000

30000

[300*90]+[370*100]

27000+37000

64000

103000-64000

39000

103*670

69010

Ending inventory COst of goods sold (COST of goods available for sale -ending inventory] FIFO

[300*120]+[370*100]

36000+37000

73000

103000-73000

30000

LIFO

[300*90]+[370*100]

27000+37000

64000

103000-64000

39000

Weighted average

103*670

69010

103000-69010= 33990

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