Scrappers Supplies tracks the number of units purchased and sold throughout each
ID: 2542737 • Letter: S
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 annual accounting period, December 31 Transactions Units Unit Cost 230 $22 Beginning inventory, January1 Transactions during the year a. Purchase on account, March 2 b. Cash sale, April 1 (S38 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($38 each) 315 (380) 280 (85) 28 TIP: 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 Unit Units Total Beginning Inventory Purchases March 2 June 30 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 InventoryExplanation / Answer
Answer
Units
Cost per unit
Total
Beginning Inventory
230
$ 22.00
$ 5,060.00
Purchases:
Mar-02
315
$ 24.00
$ 7,560.00
Jun-30
280
$ 28.00
$ 7,840.00
Total purchases
595
$ 15,400.00
Goods available for sale
825
$ 20,460.00
Cost of Goods Sold:
Units from Beginning inventory
Units from Mar 2 Purchase
185
$ 24.00
$ 4,440.00
Units from June 30 purchase
280
$ 28.00
$ 7,840.00
Total cost of goods sold
465
$ 12,280.00
Ending inventory
360
$ 8,180.00
Units
Cost per unit
Total
Beginning Inventory
230
$ 22.00
$ 5,060.00
Purchases:
Mar-02
315
$ 24.00
$ 7,560.00
Jun-30
280
$ 28.00
$ 7,840.00
Total purchases
595
$ 15,400.00
Goods available for sale
825
[20460 / 825] $ 24.80
$ 20,460.00
Cost of goods sold
465
$ 24.80
$ 11,532.00
Ending inventory
360
$ 24.80
$ 8,928.00
Units
Cost per unit
Total
Beginning Inventory
230
$ 22.00
$ 5,060.00
Purchases:
Mar-02
315
$ 24.00
$ 7,560.00
Jun-30
280
$ 28.00
$ 7,840.00
Total purchases
595
$ 15,400.00
Goods available for sale
825
$ 20,460.00
Cost of Goods Sold:
Units from Beginning inventory
230
$ 22.00
$ 5,060.00
Units from Mar 2 Purchase
235
$ 24.00
$ 5,640.00
Units from June 30 purchase
Total cost of goods sold
465
$ 10,700.00
Ending inventory
360
$ 9,760.00
Units
Cost per unit
Total
Beginning Inventory
230
$ 22.00
$ 5,060.00
Purchases:
Mar-02
315
$ 24.00
$ 7,560.00
Jun-30
280
$ 28.00
$ 7,840.00
Total purchases
595
$ 15,400.00
Goods available for sale
825
$ 20,460.00
Cost of Goods Sold:
Units from Beginning inventory
[380 x 1/5] 76
$ 22.00
$ 1,672.00
Units from Mar 2 Purchase
[380 x 4/5] 304
$ 24.00
$ 7,296.00
Units from June 30 purchase
85
$ 28.00
Total cost of goods sold
465
$ 8,968.00
Ending inventory
360
$ 11,492.00
Units
Cost per unit
Total
Beginning Inventory
230
$ 22.00
$ 5,060.00
Purchases:
Mar-02
315
$ 24.00
$ 7,560.00
Jun-30
280
$ 28.00
$ 7,840.00
Total purchases
595
$ 15,400.00
Goods available for sale
825
$ 20,460.00
Cost of Goods Sold:
Units from Beginning inventory
Units from Mar 2 Purchase
185
$ 24.00
$ 4,440.00
Units from June 30 purchase
280
$ 28.00
$ 7,840.00
Total cost of goods sold
465
$ 12,280.00
Ending inventory
360
$ 8,180.00
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