1.00 points Aircard Corporation tracks the number of units purchased and sold th

Question

1.00 points Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a periodic inventory system. The following are the transactions for the month of July. uly Beginning Inventory July 5 Sold July 13 Purchased July 17 Sold July 25 Purchased July 27 Sold 2,500 $20 1,500 6,500 3,500 8,500 26 5,500 24 Calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircard uses (a) FIFO, (b) LIFO, or (c) weighted average cost. (Round "Cost per Unit" to 2 decimal places.) FIFO LIFO e Cost Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold

Explanation / Answer

Cost of goods available for sale : [2500 *20]+ [6500 *24]+[8500*26]

                 = 50000+ 156000+ 221000

                = 427000

units available for sale :2500+6500+8500 = 17500 units

Unit cost : cost of goods available for sale /units available for sale

         = 427000/ 17500

            = $ 24.40 per unit

Unit sold : 1500+ 3500+5500 = 10500

ending inventory : 17500-10500 = 7000

Under FIFO ,units acquired first are sold first so ending inventory are left from latest purchase

Under LIFO units acquired last are sold first so ending inventory are left from initial purchase

[7000*26]july25

182000

[2500*20]Beginning+[4500*24]July13

50000+108000

158000

FIFO LIFO Weighted average cost of goods available for sale 427000 427000 427000 Ending inventory

[7000*26]july25

182000

[2500*20]Beginning+[4500*24]July13

50000+108000

158000

7000*24.4=170800 cost of goods sold 427000-182000= 245000 427000-158000=269000 256200

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