Belmont Company uses the periodic inventory system. At the end of the annual acc

Question

Belmont Company uses the periodic inventory system. At the end of the annual accounting period, December 31, 2017, the accounting records in inventory showed: Transactions Units Unit Cost Beginning inventory, Jan. 1, 2017 120 $5 Purchase, March. 15 370 6 Purchase, July 31 200 7 Sale, April 30 (sold at $12 each) (210) Sale, Sept. 15 (sold at $14 each) (250) Required: Determine the amount of goods available for sale, the ending inventory, and cost of goods sold under each of the following methods assuming the periodic inventory system. (For average cost, round the average unit cost to three decimal places.) To receive partial credit, show calculations. Method Ending Inventory Cost of Goods Sold Goods Available For Sale a. Average cost b. FIFO c. LIFO

Explanation / Answer

Required: Determine the amount of goods available for sale, the ending inventory, and cost of goods sold under each of the following methods assuming the periodic inventory system.

Cost of goods available for sale

(120*5+370*6+200*7)

Average cost FIFO LIFO

Cost of goods available for sale

(120*5+370*6+200*7)

4220 4220 4220 Ending inventory (690-460) = 230 units (4220/690*230) = 1407 (200*7+30*6) = 1580 (120*5+110*6) = 1260 Cost of goods sold 2813 2640 2960

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