core:0 of 22 pts 3013(3 complete) P6A-32A (similar to) Right Now Electronic Cent
ID: 2611008 • Letter: C
Question
core:0 of 22 pts 3013(3 complete) P6A-32A (similar to) Right Now Electronic Center began December with 65 units of merchandise inventory that cost $82 each During December, the store made the following purchases (Click the icon to view the purchases ) Right Now uses the periodic inventory system, and the physic al count at December 31 indicates that 80 unds of merchandise inventory are on hand Read the requirements Requirement 1. Determine the ending merchandise inventory and cost of goods sold amounts for the December financial statements using the FIFO, LIFO, and weighted-average inventory costing methods FIFO 74106.680 Ending inventory Cost of goods sold 7,040 6,600 6.230 6,960 Requirement 2. Sales revenue for December totaled $21,000 Compute Right Now's gross profit for December using each method 1 Data Table FIFO Cost LIFO Cost Weighted-average Gross profit Dec. 3 25 unts e s 90 each 12 30 unts@ $ 90 each 18 35 unts@S%each Print Done Enter any number in the ear neds and then caCK Check Answer Clear All remainingExplanation / Answer
Requirement 1:
FIFO method-
Date
Units (a)
Price (b)
Cost (c = a*b)
Units Sold (d)
Cost of Goods Sold (e = d*b)
Closing Units (f = a - c)
Closing Inventory (g = f*b)
Dec 1
65
82
5330
65
5330
0
0
Dec 3
25
90
2250
10
900
15
1350
Dec 12
30
90
2700
0
0
30
2700
Dec 18
35
96
3360
0
0
35
3360
Total
155
13640
6230
7410
LIFO Method-
Date
Units (a)
Price (b)
Cost (c = a*b)
Units Sold (d)
Cost of Goods Sold (e = d*b)
Closing Units (f = a - c)
Closing Inventory (g = f*b)
Dec 1
65
82
5330
0
0
65
5330
Dec 3
25
90
2250
10
900
15
1350
Dec 12
30
90
2700
30
2700
0
0
Dec 18
35
96
3360
35
3360
0
0
Total
155
13640
6960
6680
Weighted Average method -
Date
Units (a)
Price (b)
Cost (c = a*b)
Dec 1
65
82
5330
Dec 3
25
90
2250
Dec 12
30
90
2700
Dec 18
35
96
3360
Total
155
13640
Weighted average price = 13640 / 155 = $88 per unit
Ending inventory = No. of units * Weighted average price = 80*88 = $7,040
Number of units sold = Total units - Ending inventory units = 155 - 80 = 75
Cost of goods sold = No. of units * Weighted average price = 75*88 = $6,600
Requirement 2:
FIFO
LIFO
Weighted Average
Sales (a)
21000
21000
21000
Cost of Goods sold (b)
6230
6960
6600
Gross Profit (a - b)
14770
14040
14400
Date
Units (a)
Price (b)
Cost (c = a*b)
Units Sold (d)
Cost of Goods Sold (e = d*b)
Closing Units (f = a - c)
Closing Inventory (g = f*b)
Dec 1
65
82
5330
65
5330
0
0
Dec 3
25
90
2250
10
900
15
1350
Dec 12
30
90
2700
0
0
30
2700
Dec 18
35
96
3360
0
0
35
3360
Total
155
13640
6230
7410
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