Scrappers Supplies tracks the number of units purchased and sold throughout each

Question

Scrappers Supplies tracks the number of units purchased and sold throughout each accounting perio applies its inventory costing method at the end of each period, as if it uses a periodic inventory systen Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($44 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($44 each) 180 $28 290 30 (330) 230 34 (55) TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost a goods sold after all of the purchases have occurred. Required: 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round "Cost per Unit to 2 decimal places.) a. Last-in, first-out. Cost pe Total Units Unit Beginning Inventory 180 S 28.00 5,040 Purchases March 2 June 30 290 S 30.00 230S 34.00 520 700 16,520 21,560 Total Purchases Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory Units from March 2 Purchase Units from June 30 Purchase Total Cost of Goods Sold Ending Inventory

Explanation / Answer

LIFO (Periodic)

Units Cost per Unit Total Beginning Inventory 180 28 5,040 Purchases : March 2 290 30 8,700 June 30 230 34 7,820 Total purchases 520 16,520 Goods available for sale 700 21,560 Cost of Goods sold : Units from Beginning Inventory 0 0 0 Units from March 2 Purchase 155 30 4,650 Units from June 30 Purchase 230 34 7,820 Total Cost of Goods Sold 12,470 Ending Inventory 315 9,090

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