Inventory Costing Methods-Periodic Method The following information is for the B
ID: 2546442 • Letter: I
Question
Inventory Costing Methods-Periodic Method The following information is for the BloomL Company; the company sells just one product: Units Unit Cost Beginning inventory $10 14 16 20 200 . . 500 May 18. . October 23. . 100 At year-end, there was an ending inventory of 340 units. Assume the use of the periodic inventory method. Calculate the value of ending inventory and the cost of goods sold for the year using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost method. E-SA. Inventory Costing Methods-Periodic Method The following data are for the Bloom Company, L which sells just one product: Units Unit Cost 200 . . 500 400 100 400 ..380 $10 14 16 18 Beginning inventory, January 1 . . . May 18. Sales July 1 Calculate the value of ending inventory and cost of goods sold using the periodic method and (a) first- in, first-out, (b) last-in, first-out, and (c) weighted-average cost method. Round your final answers to the nearest dollar .onufacturer of luxury goods that prepares its financial LExplanation / Answer
7A (a)FIFO Method
Cost of goods sold
200× $10=2000
500× $14=7000
160× $16=2560
$11560
Ending inventory
240× $16=3840
100× $20=2000
$5840
(b) LIFO Method
Cost of good sold
100× $20=2000
400× $16=6400
360 ×$14=5040
$13440
Ending inventory
200 × $10=2000
140× $14=1960
$3960
(c) weighted average method of inventory
Total cost of purchases=$17400
(Of beginning inventory and cost of purchases)
Total units=1200
Unit Cost=$17400/1200=$14.5/-
Ending Inventory=340×$14.5=$4930
Cost of goods sold=$14.5×860= $12470
8A. (a) FIFO Method
Cost of goods sold
200 × $10=2000
500× $14=7000
80× $16=1280
$10280
Ending inventory
320× $16=5120
100× $18=1800
$6920
(b) LIFO Method
Cost of goods sold
March: 400 ×$14=5600
(From the purchases of feb)
July: 380× $16=6080
(From the purchases of May)
$11680
Ending inventory
200× $10=2000
100× $14=1400
20× $16=320
100× $18=1800
$5520
(c) Weighted Average Method
Total cost of units=$17200
(Cost of beginning inventory+purchases)
Total units=1200
Cost per unit=$17200/1200=$14.33/-
Cost of goods sold= 780×$14.33=$11180
Ending inventory= 420× $14.33=$6020
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