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Oahu Kiki tracks the number of units purchased and sold throughout each accounti

ID: 2571225 • Letter: O

Question

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki's records show the following for the month of January Sales totaled 280 units Date Units Unit CostTotal Cost Beginning Inventory January 1 120 85 $10,200 Purchase Purchase January 15 380 95 January 24 200 115 36,100 23,000 f cuircedate the number and cost of goods available for sale. 1. Calculate the number and cost of goods available for sale. Number of Goods Available for Sale units Cost of Goods Available for Sale 2. Calculate the number of units in ending inventory units Ending Inventory 3. Calculate the cost of ending inventory and cost of goods sold using the (e) FIFO. (b) LIFO, and () weighted average cost methods Cost of Ending Inventory Cost of Goods Sold FIFO LIFO Weighted Average Cost

Explanation / Answer

1) Calculate no and cost of goods available for sale :

2) calculate the number of units in ending inventory

Ending inventory = (700-280) = 420 units

3) Calculate cost of ending inventory and cost of goods sold

No of goods available for sale 700 Units Cost of goods available for sale 69300