Monty Corp. had a beginning inventory of 95 units of Product RST at a cost of $8

Question

Monty Corp. had a beginning inventory of 95 units of Product RST at a cost of $8 per unit. During the year, purchases were: Feb. 20 578 units at $9 May 5 510 units at $10 Monty Corp. uses a periodic inventory system. Sales totaled 1,520 units Aug. 12 377 units at $11 Dec. 8 99 units at $12 (a) Your answer is correct. (a) Determine the cost of goods available for sale The cost of goods available for sale (b) Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.) 16397 Average Cost 9.884 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT VIDEO: SIMILAR PROBLEM Attempts: 1 of 3 used (b) Your answer is partially correct. Try again Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost) (Round answers to 0 decimal places, e.g. 150.) FIFO LIFO AVERAGE-COST The ending inventory 1668 1112 1374 The cost of goods sold 15285 $ 14729 15024

Explanation / Answer

Cost of goods sold and ending inventory by FIFO and LIFO is as computed below:

FIFO Date Explanation Units Unit Cost Cost Jan-01 Opening Inventory 95 8 760 Feb-20 Purchased Inventory 578 9 5,202 May-05 Purchased Inventory 510 10 5,100 Aug-12 Purchased Inventory 377 11 4,147 Dec-08 Purchased Inventory 99 12 1,188 Cost of goods available for sale (a) 1,659 16,397 Cost of goods sold (b) Opening inventory sold 95 8 760 Goods purchased on Feb 20 sold 578 9 5,202 Goods purchased on May 5 sold 510 10 5,100 Goods purchased on Aug 12 sold 337 11 3,707 1,520 14,769 Ending Inventory a-b Goods purchased on Aug 12 40 11 440 Goods purchased on Dec 8 99 12 1,188 139 1,628 LIFO Date Explanation Units Unit Cost Cost Jan-01 Opening Inventory 95 8 760 Feb-20 Purchased Inventory 578 9 5,202 May-05 Purchased Inventory 510 10 5,100 Aug-12 Purchased Inventory 377 11 4,147 Dec-08 Purchased Inventory 99 12 1,188 Cost of goods available for sale (a) 1,659 16,397 Cost of goods sold (b) Goods purchased on Dec 8 sold 99 12 1,188 Goods purchased on Aug 12 sold 377 11 4,147 Goods purchased on May 5 sold 510 10 5,100 Goods purchased on Feb 20 sold 534 9 4,806 1,520 15,241 Ending Inventory a-b Goods purchased on Feb 20 44 9 396 Opening inventory 95 8 760 139 1,156

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