Practic Gradebook ORION Downloadable el ignment The accounting recoeds of Sunlan

Question

Practic Gradebook ORION Downloadable el ignment The accounting recoeds of Sunland Company show the following data. Beginning inventory 2,910 unts at $s $8 9,280 unts at $10 Purchases 8,060 units at Determine cost of goods sokl during the period under a periodic inventory system using the FIFO method. (Round answer to 0 decimal places, e-g. 1,250) FIFO Cost of goods sold during the period Determne cost of goods sold during the perod under a penodic ne ntory systern uang the uro method (Round asswer to Odeon alikas er·s.) LIFO Cost of goods sold during the period s Dete mee cost of goods sold during the penod undera periodc nventory system uang the avera-cost method, decimal places,e.g.1,250.) R ennd average cost per unit to 3 vna places, e 0-12. in, tma,a v er t Average cost Cost of goods sold duning the period s onky 2000-201uot nmnasons.anc. All Rights Reserved. A Deson of wtey &Sons.hL;

Explanation / Answer

Answer a.

FIFO:

Beginning Inventory = 2,910 units @ $5
Purchases = 8,060 units @ $8

Number of units available for sale = 2,910 + 8,060
Number of units available for sale = 10,970

Cost of Goods available for sale = 2,910 * $5 + 8,060 * $8
Cost of Goods available for sale = $79,030

Number of units sold = 9,280

Units sold includes 2,910 units from beginning inventory and 6,370 units from purchases

Cost of Goods Sold = 2,910 * $5 + 6,370 * $8
Cost of Goods Sold = $65,510

Answer b.

LIFO:

Beginning Inventory = 2,910 units @ $5
Purchases = 8,060 units @ $8

Number of units available for sale = 2,910 + 8,060
Number of units available for sale = 10,970

Cost of Goods available for sale = 2,910 * $5 + 8,060 * $8
Cost of Goods available for sale = $79,030

Number of units sold = 9,280

Units sold includes 1,220 units from beginning inventory and 8,060 units from purchases

Cost of Goods Sold = 1,220 * $5 + 8,060 * $8
Cost of Goods Sold = $70,580

Answer c.

FIFO:

Beginning Inventory = 2,910 units @ $5
Purchases = 8,060 units @ $8

Number of units available for sale = 2,910 + 8,060
Number of units available for sale = 10,970

Cost of Goods available for sale = 2,910 * $5 + 8,060 * $8
Cost of Goods available for sale = $79,030

Cost per unit = Cost of Goods available for sale / Number of units available for sale
Cost per unit = $79,030 / 10,970
Cost per unit = $7.204

Number of units sold = 9,280

Cost of Goods Sold = 9,280 * $7.204
Cost of Goods Sold = $66,853

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