12.00 points Oahu Kiki tracks the number of units purchased and sold throughout

Question

12.00 points 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, asit 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 Cost Total Cost Beginning InventoryJanuary 1 220 $90 $19,800 48,000 24.000 Purchase Purchase January 15 480 100 January 24 200 120 Required: 1. Caloulate 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 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 Cost of Goods Sold FIFO LIFO Weighted Average Cost References eBook & Resources Worksheet Difficulty: 2 Medium Objective: 07-03 Compute costs using inventory costing methods

Explanation / Answer

1. No of goods available for sale = (220+480+200) = 900 units

Cost of goods available for sale = (19800+48000+24000) = 91800

2. Ending inventory unit = (900-280) = 620 units

3. Calculate following :

Ending inventory Cost of goods sold FIFO (200*120+420*100) = 66000 (91800-66000) = 25800 LIFO (220*90+400*100) = 59800 (91800-59800) = 32000 Weighted average cost (91800/900*620) = 63240 (91800-63240) = 28560

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