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

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 320 units Date January 1 180 January 15 490 January 24 280 Units Unit Cost Total Cost Beginning Inventory Purchase Purchase 70 80 100 $12,600 39,200 28,000 Required 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 ding Inventory units 3. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. Cost of Ending Inventory Cost of Goods Sold FIFO LIFO Weighted Average Cost

Explanation / Answer

1) No of goods available for sale = 950 units

Cost of goods available for sale = (12600+39200+28000) = 79800

2) Ending inventory = 950-320 = 630 units

3) Calculate following :

Cost of ending inventory Cost of goods sold FIFO 280*100+350*80=56000 180*70+140*80=23800 LIFO 180*70+450*80 = 48600 40*80+280*100=31200 Weighted average cost (79800/950)*630=52920 (79800/950)*320= 26880

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