Inventory Costing Methods - Periodic Method Fortune Stores uses the periodic inventory system for its merchandise inventory. The April 1 inventory for one of the items in the merchandise invento of 120 units with a unit cost of $395. Transactions for this item during April were as follows: April 9 Purchased 40 units @ $415 per unit 14 Sold 80 units@ $620 per unit 23 Purchased 20 units @ $420 per unit 29 Sold 40 units Required a. Calculate the cost of goods sold and the ending inventory cost for the month of April using the weighted-average cost method. Do not round until your final answers. Round your final answers to the dollar. b. Calculate the cost of goods sold and the ending inventory cost for the month of April using the first-in, first-out method. c. Calculate the cost of goods sold and the ending inventory cost for the month of April using the last-in, first-out method. a. Weighted Average Ending Inventory $ Cost of goods Sold $ b. First-in, First-out: Ending Inventory $ Cost of Goods Sold: $ c. Last-in, first-out: Ending Inventory 0 0 0 0

Inventory Costing Methods - Periodic Method Fortune Stores uses the periodic inventory system for its merchandise inventory. The April 1 inventory for one of the items in the merchandise invento of 120 units with a unit cost of $395. Transactions for this item during April were as follows: April 9 Purchased 40 units @ $415 per unit 14 Sold 80 units@ $620 per unit 23 Purchased 20 units @ $420 per unit 29 Sold 40 units Required a. Calculate the cost of goods sold and the ending inventory cost for the month of April using the weighted-average cost method. Do not round until your final answers. Round your final answers to the dollar. b. Calculate the cost of goods sold and the ending inventory cost for the month of April using the first-in, first-out method. c. Calculate the cost of goods sold and the ending inventory cost for the month of April using the last-in, first-out method. a. Weighted Average Ending Inventory $ Cost of goods Sold $ b. First-in, First-out: Ending Inventory $ Cost of Goods Sold: $ c. Last-in, first-out: Ending Inventory 0 0 0 0

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FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Inventory Costing Methods - Periodic Method Fortune Stores uses the periodic inventory system for its merchandise inventory. The April 1 inventory for one of the items in the merchandise inventory consisted
of 120 units with a unit cost of $395. Transactions for this item during April were as follows:
April 9 Purchased 40 units
14 Sold
80 units @
23 Purchased 20 units @
29 Sold
40 units
Required
a. Calculate the cost of goods sold and the ending inventory cost for the month of April using the weighted-average cost method. Do not round until your final answers. Round your final answers to the nearest
dollar.
b. Calculate the cost of goods sold and the ending inventory cost for the month of April using the first-in, first-out method.
c. Calculate the cost of goods sold and the ending inventory cost for the month of April using the last-in, first-out method.
a. Weighted Average
Ending Inventory
Cost of goods Sold
b. First-in, First-out:
$415 per unit
$620 per unit
$420 per unit
$
$
$
Ending Inventory
Cost of Goods Sold: $
c. Last-in, first-out:
Ending Inventory
Cost of Goods Sold: $
0
0
0
0
0
0

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weighted average