02 P6-2A. Inventory Costing Methods for its merchandise inventory. The April 1 i

Question

02 P6-2A. Inventory Costing Methods for its merchandise inventory. The April 1 inventory for one of the items in the merchandise inven- tory consisted of 120 units with a unit cost of $330. Transactions for this item during April were as follows: Periodic Method Fortune Stores uses the periodic inventory system 9 Purchased 40 units @$345 per unit. 14 Sold 80 units@$550 per unit. 23 Purchased 20 units@$350 per unit. 29 Sold 40 units @ $550 per unit. April Required a. Calculate the cost of goods sold and the ending inventory cost for the month of April using the the cost of goods sold and the ending inventory cost for the month of April using the the cost of goods sold and the ending inventory cost for the month of April using the e cost method. Round your final answers to the nearest dollar. weighted-averag first-in, first-out method. last-in, first-out method. b. Calculate c. Calculate

Explanation / Answer

a) Weighted rate = (120*330+40*345+20*350)/180 = $335.5556

Cost of good sold = 120*335.5556 = $40267

Ending Inventory = 60*335.5556 = $20133

b) Cost of goods sold using FIFO = 120*330 = $39600

Ending Inventory = 40*345+20*350 = $20800

c) Cost of goods sold using LIFO = $20*350+40*345+60*330 = $40600

Ending Inventory = 60*330 = $19800

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