1. Calculate cost of ending inventory and cost of goods sold using periodic FIIFO, LIFO, and Weighted Average Cost methods. 1 Better Bottles, Inc., uses a periodic inventory system and has the following information available: # of Units Description Beginning Inventory 5 Jan. 15 Purchase Cost per Unit 20.00 | $ Total Cost 4 20 $ 400.00 27 22.00 594.00 6 Jan. 20 Purchase 33 30.00 990.00 7 Goods Available for Sale 80 1,984.00 8 Less: January Sales 36 9. Ending Inventory 44 10 11 12 Required: 13 1) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic FIFO. 14 15 FIFO Ending Inventory 16 Description # of Units Cost per Unit Total Cost 17 Jan. 20 Purchase 33 $ 30.00 | $ 990.00 18 Jan. 15 Purchase 19 44 !1 FIFO Cost of Goods Sold 12 # of Units Total Cost Description 3 Beginning Inventory Cost per Unit 20 $ 20.00 | $ 400.00 '4 Jan. 15 Purchase 15 36 7 2) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic LIFO. :8 19 LIFO Ending Inventory Description 1 Beginning Inventory # of Units Cost per Unit Total Cost 12 Jan. 15 Purchase 13 44 14 15 LIFO Cost of Goods Sold 16 Description # of Units Cost per Unit Total Cost 17 Jan. 20 Purchase 18 Jan. 15 Purchase 19 36 1 3) Using Periodic Weighted Average, first calculate the cost per unit using the formula below. 2 Next, apply that same cost per unit to calculate both the Ending Inventory and Cost of Goods Sold. 2 Next, apply that same cost per unit to calculate both the Ending Inventory and Cost of Goods Sold. Weighted Cost of Goods Available for Sale Average Cost = Number of Units Available for Sale per un Weighted Average Ending Inventory # of Units Cost per Unit Total Cost Weighted Average Cost of Goods Sold # of Units Cost per Unit Total Cost 4) Use the given information and your calculated numbers to complete the Cost of Goods Sold 7 Equation below for all three inventory methods. (All numbers should be positive.) FIFO LIFO Wtd. Avg. - Beginning Inventory D Add: Purchases 1 Goods Available for Sale 2 Less: Ending Inventory 3 Cost of Goods Sold
1. Calculate cost of ending inventory and cost of goods sold using periodic FIIFO, LIFO, and Weighted Average Cost methods. 1 Better Bottles, Inc., uses a periodic inventory system and has the following information available: # of Units Description Beginning Inventory 5 Jan. 15 Purchase Cost per Unit 20.00 | $ Total Cost 4 20 $ 400.00 27 22.00 594.00 6 Jan. 20 Purchase 33 30.00 990.00 7 Goods Available for Sale 80 1,984.00 8 Less: January Sales 36 9. Ending Inventory 44 10 11 12 Required: 13 1) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic FIFO. 14 15 FIFO Ending Inventory 16 Description # of Units Cost per Unit Total Cost 17 Jan. 20 Purchase 33 $ 30.00 | $ 990.00 18 Jan. 15 Purchase 19 44 !1 FIFO Cost of Goods Sold 12 # of Units Total Cost Description 3 Beginning Inventory Cost per Unit 20 $ 20.00 | $ 400.00 '4 Jan. 15 Purchase 15 36 7 2) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic LIFO. :8 19 LIFO Ending Inventory Description 1 Beginning Inventory # of Units Cost per Unit Total Cost 12 Jan. 15 Purchase 13 44 14 15 LIFO Cost of Goods Sold 16 Description # of Units Cost per Unit Total Cost 17 Jan. 20 Purchase 18 Jan. 15 Purchase 19 36 1 3) Using Periodic Weighted Average, first calculate the cost per unit using the formula below. 2 Next, apply that same cost per unit to calculate both the Ending Inventory and Cost of Goods Sold. 2 Next, apply that same cost per unit to calculate both the Ending Inventory and Cost of Goods Sold. Weighted Cost of Goods Available for Sale Average Cost = Number of Units Available for Sale per un Weighted Average Ending Inventory # of Units Cost per Unit Total Cost Weighted Average Cost of Goods Sold # of Units Cost per Unit Total Cost 4) Use the given information and your calculated numbers to complete the Cost of Goods Sold 7 Equation below for all three inventory methods. (All numbers should be positive.) FIFO LIFO Wtd. Avg. - Beginning Inventory D Add: Purchases 1 Goods Available for Sale 2 Less: Ending Inventory 3 Cost of Goods Sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:1. Calculate cost of ending inventory and cost of goods sold using periodic FIIFO, LIFO, and Weighted Average Cost methods.
1 Better Bottles, Inc., uses a periodic inventory system and has the following information available:
# of Units
Description
Beginning Inventory
5 Jan. 15 Purchase
Cost per Unit
20.00 | $
Total Cost
4
20 $
400.00
27
22.00
594.00
6 Jan. 20 Purchase
33
30.00
990.00
7 Goods Available for Sale
80
1,984.00
8 Less: January Sales
36
9.
Ending Inventory
44
10
11
12 Required:
13 1) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic FIFO.
14
15
FIFO Ending Inventory
16
Description
# of Units
Cost per Unit
Total Cost
17 Jan. 20 Purchase
33 $
30.00 | $
990.00
18 Jan. 15 Purchase
19
44
Transcribed Image Text:!1
FIFO Cost of Goods Sold
12
# of Units
Total Cost
Description
3 Beginning Inventory
Cost per Unit
20 $
20.00 | $
400.00
'4 Jan. 15 Purchase
15
36
7 2) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic LIFO.
:8
19
LIFO Ending Inventory
Description
1 Beginning Inventory
# of Units
Cost per Unit
Total Cost
12 Jan. 15 Purchase
13
44
14
15
LIFO Cost of Goods Sold
16
Description
# of Units
Cost per Unit
Total Cost
17 Jan. 20 Purchase
18 Jan. 15 Purchase
19
36
1 3) Using Periodic Weighted Average, first calculate the cost per unit using the formula below.
2 Next, apply that same cost per unit to calculate both the Ending Inventory and Cost of Goods Sold.
2 Next, apply that same cost per unit to calculate both the Ending Inventory and Cost of Goods Sold.
Weighted
Cost of Goods Available for Sale
Average Cost =
Number of Units Available for Sale
per un
Weighted Average Ending Inventory
# of Units
Cost
per
Unit
Total Cost
Weighted Average Cost of Goods Sold
# of Units
Cost
per
Unit
Total Cost
4) Use the given information and your calculated numbers to complete the Cost of Goods Sold
7 Equation below for all three inventory methods. (All numbers should be positive.)
FIFO
LIFO
Wtd. Avg.
- Beginning Inventory
D Add: Purchases
1 Goods Available for Sale
2 Less: Ending Inventory
3 Cost of Goods Sold
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