E7-7 Calculating Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO, LIFO, and...

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E7-7 Calculating Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO, LIFO, and Weighted Average Cost LO 7-3 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 240 units. Beginning Inventory Purchase Date Units Unit Cost Total Cost January 1 120 $ 80 $9,600 January 15 380 90 34,200 January 24 200 110 22,000 Purchase Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. Req. 1 Beginning Inventory + Purchase 120 units x $ 80 380 units x $ 90 $ 9,600 34,200 + Purchase 200 units x $110 22,000 Goods Available for Sale 700 units $ 65,800 Req. 2 UNITS IN ENDING INVENTORY = UNITS AVAILABLE - UNITS SOLD = 700 - 240 = 460 UNITS. Req. 3 (a) FIFO Goods Available for Sale $65,800 45,400 Ending Inventory (LIST) (200 $110) + (260 x $90) Cost of Goods Sold (FIFO) (120 x $80) + (120 $90) $ 20,400 (b) LIFO Goods Available for Sale $ 65,800 40,200 Ending Inventory (FIST) (120 $80) + (340 x $90) Cost of Goods Sold (LIFO) (200 x $110) + (40 x $90) $ 25,600 Weighted average unit cost: Cost of Goods Avail per $65,800 # Units Available for Sale unit 700 units (c) Weighted Average Goods Available for Sale $ 65,800 - Ending Inventory (460 $94) 43,240 Cost of Goods Sold (240 x $94) $ 22,560 E7-7 Calculating Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO, LIFO, and Weighted Average Cost LO 7-3 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 240 units. Beginning Inventory Purchase Date Units Unit Cost Total Cost January 1 120 $ 80 $9,600 January 15 380 90 34,200 January 24 200 110 22,000 Purchase Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. Req. 1 Beginning Inventory + Purchase 120 units x $ 80 380 units x $ 90 $ 9,600 34,200 + Purchase 200 units x $110 22,000 Goods Available for Sale 700 units $ 65,800 Req. 2 UNITS IN ENDING INVENTORY = UNITS AVAILABLE - UNITS SOLD = 700 - 240 = 460 UNITS. Req. 3 (a) FIFO Goods Available for Sale $65,800 45,400 Ending Inventory (LIST) (200 $110) + (260 x $90) Cost of Goods Sold (FIFO) (120 x $80) + (120 $90) $ 20,400 (b) LIFO Goods Available for Sale $ 65,800 40,200 Ending Inventory (FIST) (120 $80) + (340 x $90) Cost of Goods Sold (LIFO) (200 x $110) + (40 x $90) $ 25,600 Weighted average unit cost: Cost of Goods Avail per $65,800 # Units Available for Sale unit 700 units (c) Weighted Average Goods Available for Sale $ 65,800 - Ending Inventory (460 $94) 43,240 Cost of Goods Sold (240 x $94) $ 22,560