Inventory Costing Methods The following information is for the Bloom Company for the cur- rent year; the company sells just one product: Units Unit Cost Beginning inventory Purchases: 200 $10 Feb. 11 500 400 14 16 May 18 October 23 100 20 At December 31 there was an ending inventory of 360 units. Assume the use of the periodic inven- tory method. Calculate the value of ending inventory and the cost of goods sold for the year using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost method.
Inventory Costing Methods The following information is for the Bloom Company for the cur- rent year; the company sells just one product: Units Unit Cost Beginning inventory Purchases: 200 $10 Feb. 11 500 400 14 16 May 18 October 23 100 20 At December 31 there was an ending inventory of 360 units. Assume the use of the periodic inven- tory method. Calculate the value of ending inventory and the cost of goods sold for the year using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost method.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:E7-8A. Inventory Costing Methods The following information is for the Bloom Company for the cur-
rent year; the company sells just one product:
Units
Unit Cost
Beginning inventory ..
Purchases:
200
$10
Feb. 11
500
14
16
Маy 18 .
October 23
400
100
20
At Decemnber 31 there was an ending inventory of 360 units. Assume the use of the periodic inven-
tory method. Calculate the value of ending inventory and the cost of goods sold for the year using
(a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost method.
Transcribed Image Text:SE7-8. Inventory Costing Methods and the Periodic Method Lambeth Company experienced the fol-
lowing events in January:
Date
Event
Units
Unit Cost
Total Cost
Purchased inventory.
Purchased inventory.
Sold inventory. .
Jan. 10
100
$12
$1,200
Jan. 20
200
14
2,800
Jan. 30
150
If the Lambeth Company uses the FIFO inventory costing method, calculate the company’s cost of
goods sold and its ending inventory as of January 31 assuming the periodic method.
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