Inventory Costing Method

Jonny Cake Co$$s beginning inventory and purchases during the year ended December $31,2016$ were as follows:

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$$

Unit

Units Cost

Total Cost

January $1$

Inventory

$1,000$

$$50\mathrm{.}00$

$$50,000$

March $10$

Purchase

$3,000$

$$52\mathrm{.}00$

$$156,000$

June $25$

Sold $1600$ units

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$$

$$

August $30$

Purchase

$2,600$

$$55\mathrm{.}00$

$$143,000$

October $5$

Sold $4,000$ units

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$$

November $26$

Purchase

$1,000$

$$57\mathrm{.}68$

$$57,680$

December $31$

Sold $800$ units

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Total

$$

$7,600$

$$

$$406,680$

$$

Instructions:

$1.$ Determine the cost of inventory on December $31,2016,$ using the perpetual system for the following costing methods:

a$.$ First$-$in$,$ first$-$out

b$.$ Last$-$in$,$ first$-$out

c$.$ Weighted average cost

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$2.$ Determine the cost of inventory and Cost of Merchandise Sold on December $31,2016,$ using the periodic system for the following costing methods:

a$.$ First$-$in$,$ first$-$out

b$.$ Last$-$in$,$ first$-$out

c$.$ Weighted average cost

FIFO $($Perpetual System$)$

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Purchases

Cost of Merchandise Sold

Inventory

Date

Quantity

Unit cost

Total Cost

Quantity

Unit cost

Total Cost

Quantity

Unit cost

Total Cost

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Dec. $31$

Balances

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LIFO $($Perpetual System$)$

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Purchases

Cost of Merchandise Sold

Inventory

Date

Quantity

Unit cost

Total Cost

Quantity

Unit cost

Total Cost

Quantity

Unit cost

Total Cost

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Dec. $31$

Balances

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WAC $($Perpetual System$)$

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Purchases

Cost of Merchandise Sold

Inventory

Date

Quantity

Unit cost

Total Cost

Quantity

Unit cost

Total Cost

Quantity

Unit cost

Total Cost

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