Date Jan. 1 Inventory (beg.) Jan. 3 Purchases Jan. 7 Sales (at $26 per unit) Jan. 20 Purchases Jan. 22 Sales (at $27 per unit) 14,400 Jan. 30 Purchases Units Unit Cost 1,800 $10.00 16,200 $10.40 6,300 5,400 $11.00 a. Assuming that Undew maintains a periodic inventory system, compute ending inventory and cost of goods sold for the month ending January 31 using (1) average cost, (2) FIFO, and (3) LIFO. b. Assuming that Undew maintains a perpetual inventory system, compute ending inventory and cost of goods sold for the month ending January 31 using (1) moving average, (2) FIFO, and (3) LIFO. 2,700 $12.00 Average cost (periodic) FIFO (periodic) LIFO (periodic) Moving average (perpetual) (1) Average cost method (periodic) Unit cost $ 6,525 x + Computation of Weighted Average Unit Cost Numerator Denominator Result Ending Inventory Cost of goods sold 10.85 * - $ •Note: Use the result EXACTLY as displayed above in the calculations below. *Note: Do not use negative signs with any of your answers. • Note: Round your final answers to the nearest whole dollar. Average Cost (Periodic) Cost of goods available for sale $ 278,280 55.575 x $ 220,705 x 601.38 FIFO (perpetual) LIFO (perpetual) ↑
Date Jan. 1 Inventory (beg.) Jan. 3 Purchases Jan. 7 Sales (at $26 per unit) Jan. 20 Purchases Jan. 22 Sales (at $27 per unit) 14,400 Jan. 30 Purchases Units Unit Cost 1,800 $10.00 16,200 $10.40 6,300 5,400 $11.00 a. Assuming that Undew maintains a periodic inventory system, compute ending inventory and cost of goods sold for the month ending January 31 using (1) average cost, (2) FIFO, and (3) LIFO. b. Assuming that Undew maintains a perpetual inventory system, compute ending inventory and cost of goods sold for the month ending January 31 using (1) moving average, (2) FIFO, and (3) LIFO. 2,700 $12.00 Average cost (periodic) FIFO (periodic) LIFO (periodic) Moving average (perpetual) (1) Average cost method (periodic) Unit cost $ 6,525 x + Computation of Weighted Average Unit Cost Numerator Denominator Result Ending Inventory Cost of goods sold 10.85 * - $ •Note: Use the result EXACTLY as displayed above in the calculations below. *Note: Do not use negative signs with any of your answers. • Note: Round your final answers to the nearest whole dollar. Average Cost (Periodic) Cost of goods available for sale $ 278,280 55.575 x $ 220,705 x 601.38 FIFO (perpetual) LIFO (perpetual) ↑
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
D2.
Transcribed Image Text:Date
Jan. 1 Inventory (beg.)
Jan. 3 Purchases
Jan. 7 Sales (at $26 per unit)
Jan. 20 Purchases
Jan. 22 Sales (at $27 per unit) 14,400
Jan, 3D Purchases
Units Unit Cost
1,800 $10.00
16,200 $10.40
6,300
5,400 $11.00
2,700 $12.00
a. Assuming that Undew maintains a periodic inventory system, compute ending inventory and cost of goods sold for the month ending January 31 using (1) average cost, (2) FIFO, and (3) LIFO.
b. Assuming that Undew maintains a perpetual inventary system, compute ending inventory and cost of goods sold for the month ending January 31 using (1) moving average, (2) FIFO, and (3) LIFO.
Average cost (periodic) FIFO (periodic) LIFO (periodic)
(1) Average cost method (periodic)
Unit cost $ 6,525 x +
Computation of Weighted Average Unit Cost
Numerator Denominator
Result
10.85 * $
Average Cost (Periodic)
Cost of goods available for sale $
Ending Inventory
Cost of goods sold
•Note: Use the result EXACTLY as displayed above in the calculations below.
*Note: Do not use negative signs with any of your answers.
• Note: Round your final answers to the nearest whole dollar.
$
601.38
278,280 ✔
55,575 x
220,705 x
Moving average (perpetual)
FIFO (perpetual)
LIFO (perpetual)
↑
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