Sarappers Supplies tracks the number of units purchased and sold throughout each

Question

Sarappers 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 Beginning inventory, January 1 Transactions during the year a. Purchase on account, March 2 b. Cash sale, April 1 ($37 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($37 each) 240 $21 320 23 290 27 (95) TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the oost of goods sold after all of the purchases have occured 1. Compute the cost of goods available for sale, oost of ending inventory, and cost of goods sold at December 31 under each of the folowing inventory costing methods: (Round "Cost per Unit" to 2 decimal places a. Last-in, first-out LIFO (Periodic) Cost per Total Units 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 Inventory FS esc F3 F4 F1

Explanation / Answer

LIFO UNITS CPU TOTAL Beginning Inventory 240 21 5040 Purchases    March 2 320 23 7360    June 30 290 27 7830 Total Purchases 15190 Good available for sale 850 20230 Cost of goods sold Units from Beginning Inv. 0 21 0 Units from Purchase MAr2 195 23 4485 Units from Purchases June30 290 27 7830 Total cost of cost sold 485 12315 Ending inventory 365 7915 Weighted Average UNITS CPU TOTAL Beginning Inventory 240 21 5040 Purchases    March 2 320 23 7360    June 30 290 27 7830 Total Purchases 15190 Good available for sale 850 23.8 20230 Cost of goods sold 485 23.8 11543 Ending Inventory 365 8687 FIFO UNITS CPU TOTAL Beginning Inventory 240 21 5040 Purchases    March 2 320 23 7360    June 30 290 27 7830 Total Purchases 15190 Good available for sale 850 20230 Cost of goods sold Units from Beginning Inv. 320 21 6720 Units from Purchase MAr2 165 23 3795 Units from Purchases June30 0 27 0 Total cost of cost sold 485 10515 Ending inventory 365 9715 Specific Identification UNITS CPU TOTAL Beginning Inventory 240 21 5040 Purchases    March 2 320 23 7360    June 30 290 27 7830 Total Purchases 15190 Good available for sale 850 20230 Cost of goods sold Units from Beginning Inv. 78 21 1638 Units from Purchase MAr2 312 23 7176 Units from Purchases June30 95 27 2565 Total cost of cost sold 485 11379 Ending inventory 365 8851

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