Question: Periodic Method: Computing Inventory Using LIFO, FIFO, WA, and SI; Financial Impacts; and Inventory ErrorsCraig Company buys and sells one product. Its beginning inventory, purchases,
Periodic Method:
Computing Inventory Using LIFO, FIFO, WA, and SI; Financial Impacts; and Inventory
ErrorsCraig Company buys and sells one product. Its beginning inventory, purchases, and sales during calendar-year 2018 follow.
Date Activity Units Acquired at Cost Total Units Sold at Retail Unit Inventory
Jan. 1 Beg. Inventory400 units @ $14 =$5,600-400 units
Jan. 15 Sale--200 units @ $30200 units
Mar. 10 Purchase200 units @ $15 = $3,000-400 units
Apr. 1 Sale--200 units @ $30200 units
May 9 Purchase300 units @ $16 = $4,800-500 units
Sep.22 Purchase250 units @ $20 = $5,000-750 units
Nov. 1 Sale--300 units @ $35450 units
Nov. 28 Purchase100 units @ $21 = $2,100-550 units
-Totals1,250 units$20,500700 units550 units
Track data for specific identification:
1 January 15 sale200 units @ $14,
2 April 1 sale200 units @ $15,
3 November 1 sale200 units @ $14 and 100 units @ $20.
Answer Following Questions:
- What is the Cost of Good Available for Sale? How many units are available for sale?
- Using the Periodic System, determine Cost of Goods Sold and Ending Inventory using one of the methods: Specific Identification, Weighted Average, FIFO, or LIFO. Show your work.
- Explain how the calculation might be different if you used Perpetual System instead.
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