Exercise 6-16 Alternative cost flow assumptions-periodic LO8 Paddington Gifts made purchases of a particular product in the current year as follows: Jan. 1 Beginning inventory Mar. 7 Purchased July 28 Purchased 3 Purchased 250 units e s6.10 = $ 1,525 510 units e $5.70 = 1,100 units 890 units e$4.50 2,907 5,610 es5.10 - Oct. 4,005 Totals 2,750 units $ 14,047 Required: 1. The business uses a periodic inventory system. Ending inventory consists of 130 units. Calculate the costs to be assigned to the ending inventory and to goods sold under: (Round intermediate calculations and final answers to 2 decimal places for "Weight average cost".)
Exercise 6-16 Alternative cost flow assumptions-periodic LO8 Paddington Gifts made purchases of a particular product in the current year as follows: Jan. 1 Beginning inventory Mar. 7 Purchased July 28 Purchased 3 Purchased 250 units e s6.10 = $ 1,525 510 units e $5.70 = 1,100 units 890 units e$4.50 2,907 5,610 es5.10 - Oct. 4,005 Totals 2,750 units $ 14,047 Required: 1. The business uses a periodic inventory system. Ending inventory consists of 130 units. Calculate the costs to be assigned to the ending inventory and to goods sold under: (Round intermediate calculations and final answers to 2 decimal places for "Weight average cost".)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please don't draw a table, its confusing. Can you please explain step by step how you got the values for the calculations for the FIFO and Wiegheted Moving Averages. Please I need explanation in detail.
Transcribed Image Text:Exercise 6-16 Alternative cost flow assumptions-periodic LO8
Paddington Gifts made purchases of a particular product in the current year as follows:
1 Beginning inventory
250 units @ $6.10 = $ 1,525
510 units @ $5.70 =
1,100 units @$5.10
890 units e$4.50
Jan.
7 Purchased
Purchased
2,907
5,610
4,005
Mar.
July 28
Oct.
3 Purchased
Totals
2,750 units
$ 14,047
Required:
1. The business uses a periodic inventory system. Ending inventory consists of 130 units. Calculate the costs to be assigned to the
ending inventory and to goods sold under: (Round intermediate calculations and final answers to 2 decimal places for "Weighted
average cost".)
Transcribed Image Text:3. Determine the share of the cost of goods available for sale calculated in Part 1 that should be assigned to ending inventory and to
goods sold under: (Do not round the intermediate calculations and round the final answers to nearest whole dollar.)
Cost of Goods
Ending
Inventory
Sold
a. FIFO
b. Moving weighted average
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