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 period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system Assume its accounting records provided the following information at the end of the annua 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 ($54 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($54 each) 200 $38 350 40 (350) 250 (70) FIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of 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 LIFO (Periodic) Cost per Total Beginning Inventory Purchases March 2 June 30 Total Purchases 0 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 0 Ending Inventory

Explanation / Answer

Under LIFO Method -

Under Weighted avg. cost -

(c) Under FIFO -

d. Under specific identification -

Please comment in case of further clarification required.

LIFO periodic units cost per unit Total Beginning inventory 200 38 7600 purchases 2-Mar 350 40 14000 30-Jun 250 44 11000 Total purchases 600 25000 goods available for sale 800 32600 Cost of goods sold Units from beginning inventory Units from march 2 purcahse 170 40 6800 Units from june 30 purcahse 250 44 11000 Total cost of goods sold 420 17800 Ending inventory 380 14800

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