M7-7 Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Endin

Question

M7-7 Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under FIFO, LIFO, and Weighted Average Cost (Periodic Inventory) [LO 7-3] Aircard Corporation 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. The following are the transactions for the month of July July1 Beginning Inventory July 5 Sold July 13 Purchased July 17 Sold July 25 Purchased July 27 Sold Units Unit Cost 2,000 $30 1,000 6,000 3,000 8,000 5,000 34 36 Calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircard uses (a) FIFO, (b) LIFO, or (c) weighted average cost. (Round "Cost per Unit" to 2 decimal places.) Weighte Average Cost FIFO LIFO Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold

Explanation / Answer

Calculate following ::

FIFO LIFO Weighted average cost Cost of goods available for sale 552000 552000 552000 Ending inventory (7000*36) = 252000 (2000*30+5000*34) = 230000 (552000/16000*7000) = 241500 Cost of goods sold 300000 322000 310500

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