* Perpetual Invent © Perpetual Invent © Perpetual Invent © Chegg Study l G © CR
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* Perpetual Invent © Perpetual Invent © Perpetual Invent © Chegg Study l G © CR Ch 7.3 Exerci @ Homepage-AC + ¢v2.cengagenow.com/ilrntakeAssignment/takeAssignmentMain.do?!nvoker-... asearch Ch 7-3 Exercises & Problems eBook Show Me How Calculator Print Item Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an Item avallable for sale during the year were as follows: an. 1 Mar. 10 Purchase Aug. 30 Purchase Dec. 12 Purchase There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. 1. EX.07-15.ALGO 2. EX.07-03.ALGO 40 units $96 70 units $106 30 units $114 60 units$118 Inventory 3. EX.07-04.ALGO 4. EX.07-08 5. EX.07-13.ALGO 6. EX.07-18.ALGO Cost of Merchandise Inventory and Cost of Merchandise Sold Inventory Method Merchandise Inventory Merchandise Sold First-In, first-out (FIFO) Last-in, first-out (LIFO) Weighted average cost Check My Work 2 more Check My Work uses remaining. Previous Next Progress: 5/6 items Assignment Score: 0.0% Save and Exit Submit Assignment for Grading Type here to search 1023 PM 11/15/2017 10Explanation / Answer
Ending inventory = 80 units
Units sold = Units available for sale - Ending inventory = 200-80 = 120 units
FIFO:-
Cost of goods sold = Cost of Merchandise sold = 40 units @ $96 + 70 units @ $106 + 10 units @ $114 = 3,840+7,420+1,140 = $12,400
Ending inventory = Merchandise inventory = Cost of goods available for sale - Cost of goods sold = 21,760-12,400 = $9,360
LIFO:-
Cost of goods sold = 60 units @ $118 + 30 units @ $114 + 30 units @ $106 = 7,080+3,420+3,180 = $13,680
Ending inventory = Cost of goods available for sale - Cost of goods sold = 21,760-13,680 = $8,080
Weighted average cost:-
Weighted average cost per unit = Cost of goods available for sale ÷ Units available for sale = 21,760÷200 = $108.8
Cost of goods sold = Units sold × Weighted average cost per unit = 120×108.8 = $13,056
Ending inventory = Cost of goods available for sale - Cost of goods sold = 21,760-13,056 = $8,704
Units available for sale × Rate = Cost of goods available for sale Jan 1 Inventory 40 × $96 = $3,840 Mar 10 Purchase 70 × 106 = 7,420 Aug 30 Purchase 30 × 114 = 3,420 Dec 12 Purchase 60 × 118 = 7,080 Total 200 units $21,760Related Questions
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