Module 7 ch6 Exercises eBook Show Me How Calculator ? 1. EX.06-05.ALGO Periodic inventory by three methods; cost of goods sold 2. EX.06-13.ALGO 3. EX.06-15.ALGO The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units at $108 Mar. 10 Purchase 40 units at $116 Aug. 30 Purchase 30 units at $120 Dec. 12 Purchase 90 units at $126 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Ending Inventory and Cost of Goods Sold Inventory Method Ending Inventory Cost of Goods Sold First-in, first-out (FIFO) $ 4,320 X $ 4,320 x Last-in, first-out (LIFO) 23,900 x Weighted average cost Feedback Check My Work Note that this exercise uses the periodic inventory system. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory costs for the period are calculated by taking the number of items remaining in the physical inventory times the most recent purchase price. If the number of items in last purchase layer is less than the number in ending inventory, the balance of the ending inventory items must be recorded at the second most recent purchase cost. The cost of merchandise sold for the period can be calculated by subtracting the ending inventory from the total cost of goods available for sale. Note that this exercise uses the periodic inventory system. LIFO means the last units purchased are assumed to be the first to be sold. Therefore the ending inventory for the period is made up of the earliest costs from the period (the beginning inventory). If the number of units in the ending inventory is greater than the units in the beginning inventory, the excess units will be recorded at the next oldest cost associated with the first purchase. The cost of merchandise sold for the period can be calculated by subtracting the ending inventory from the total cost of goods available for sale. ... -------- Previous Check My Work Progress: 2/3 items Next Assignment Score: 47.92% All work saved. Save and Exit Submit Assignment for Grading 4,577 OCT 4 SA tv M A W