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, 2016, the accounting records in inventory showed:

Transactions

Units

Unit Cost

Beginning inventory, Jan. 1, 2016

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 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
in Dollars

Cost of Goods Sold

Goods Available

For Sale

a.

Average cost

b.

FIFO

c.

LIFO

Transactions

Units

Unit Cost

Beginning inventory, Jan. 1, 2016

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)

Explanation / Answer

Determine the amount of 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 No of units Cost of goods available for sale Ending inventory Cost of goods sold a Average cost 690 4220 (4220/690)*230=1406.68 2813.32 b FIFO 690 4220 (200*7+30*6)=1580 2640 c LIFO 690 4220 (120*5+110*6)=1260 2960

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