Inventory Costing Methods—Periodic Method Arrow Company is a retailer that uses the periodic inventory system. August 1 Beginning inventory 80 units of Product A @ $1,600 total cost 5 Purchased 100 units of Product A @ $2,116 total cost 8 Purchased 200 units of Product A @ $4,416 total cost 11 Sold 170 units of Product A @ $4,800 total sale Calculate the August cost of goods sold and the ending inventory at August 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Do not round until your final answers. Round your final answers to the nearest dollar. A. First-in, first-out Ending Inventory Answer Cost of Goods Sold Answer B. Last-in, first-out Ending Inventory Answer Cost of Goods Sold Answer C. Weighted-average cost Ending Inventory Answer Cost of Goods
Inventory Costing Methods—Periodic Method Arrow Company is a retailer that uses the periodic inventory system. August 1 Beginning inventory 80 units of Product A @ $1,600 total cost 5 Purchased 100 units of Product A @ $2,116 total cost 8 Purchased 200 units of Product A @ $4,416 total cost 11 Sold 170 units of Product A @ $4,800 total sale Calculate the August cost of goods sold and the ending inventory at August 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Do not round until your final answers. Round your final answers to the nearest dollar. A. First-in, first-out Ending Inventory Answer Cost of Goods Sold Answer B. Last-in, first-out Ending Inventory Answer Cost of Goods Sold Answer C. Weighted-average cost Ending Inventory Answer Cost of Goods
Chapter1: Financial Statements And Business Decisions
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Inventory Costing Methods—Periodic Method
Arrow Company is a retailer that uses the periodic inventory system.
| August | 1 | Beginning inventory | 80 | units of Product A @ | $1,600 | total cost |
| 5 | Purchased | 100 | units of Product A @ | $2,116 | total cost | |
| 8 | Purchased | 200 | units of Product A @ | $4,416 | total cost | |
| 11 | Sold | 170 | units of Product A @ | $4,800 | total sale |
Calculate the August cost of goods sold and the ending inventory at August 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.
Do not round until your final answers. Round your final answers to the nearest dollar.
| A. First-in, first-out | ||
| Ending Inventory | Answer
|
|
| Cost of Goods Sold | Answer
|
|
| B. Last-in, first-out | ||
| Ending Inventory | Answer
|
|
| Cost of Goods Sold | Answer
|
|
| C. Weighted-average cost | ||
| Ending Inventory | Answer
|
|
| Cost of Goods Sold | Answer
|
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Step 1: Introduce to FIFO, LIFO AND WEIGHTED AVERAGE METHOD
VIEWStep 2: Working for cost per unit
VIEWStep 3: Working for cost of goods sold and ending inventory using FIFO
VIEWStep 4: Working for cost of goods sold and ending inventory using LIFO
VIEWStep 5: Working for cost of goods sold and ending inventory using Weighted Average
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