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Inventory Purchase Periodic inventory by three methods; cost of goods sold The units of an item available for sale during the year were as follows: Jan, 1 40 units at $96 Mar. 10 70 units at $104 Aug 30 Purchase 20 units at $112 Dec. 12 Purchase 70 units at $114 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Show Me How Determine the ending inventory cost and the cost of goods sold by three methods. In your calculations round average unit cost to the nearest cent, and round all other calculations and your final answers to the nearest dollar. Cost of Ending Inventory and Cost of Goods Sold Ending Inventory 9.000 9,120 X 8.316 Inventory Method First-in, first-out (FIFO) Last-in, first-out (LIFO) weighted average cost Cost of Goods Sold 12,30✔ 4,200 X 12,304 TO My W Note that this exercise uses the periodic inventory system. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory costs for the period are calculated by taking the number of items remaining in the physical inventory times the most recent purchase price. If the number of items in last purchase layer is less than the number in ending inventory, the balance of the ending inventory items must be recorded at the second most recent purchase cost. The cost of merchandise sold for the period can be calculated by subtracting the ending inventory from the total cost of goods available for sale

Inventory Purchase Periodic inventory by three methods; cost of goods sold The units of an item available for sale during the year were as follows: Jan, 1 40 units at $96 Mar. 10 70 units at $104 Aug 30 Purchase 20 units at $112 Dec. 12 Purchase 70 units at $114 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Show Me How Determine the ending inventory cost and the cost of goods sold by three methods. In your calculations round average unit cost to the nearest cent, and round all other calculations and your final answers to the nearest dollar. Cost of Ending Inventory and Cost of Goods Sold Ending Inventory 9.000 9,120 X 8.316 Inventory Method First-in, first-out (FIFO) Last-in, first-out (LIFO) weighted average cost Cost of Goods Sold 12,30✔ 4,200 X 12,304 TO My W Note that this exercise uses the periodic inventory system. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory costs for the period are calculated by taking the number of items remaining in the physical inventory times the most recent purchase price. If the number of items in last purchase layer is less than the number in ending inventory, the balance of the ending inventory items must be recorded at the second most recent purchase cost. The cost of merchandise sold for the period can be calculated by subtracting the ending inventory from the total cost of goods available for sale

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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q'd) Homework LGO LGO XCEL ALGO EXCEL ALGO ALGO EXCEL ALGO ^ eBook Periodic inventory by three methods; cost of goods sold The units of an item available for sale during the year were as follows: Inventory Jan, 1 Mar. 10 Purchase Aug. 30 Purchase Dec. 12 Purchase 40 units at 596 70 units at $104 20 units at $112 70 units at $114 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by three methods. In your calculations round average unit cost to the nearest cent, and round all other calculations and your final answers to the nearest dollar. Show Me How Cost of Ending Inventory and Cost of Goods Sold Ending Inventory Inventory Method First-in, first-out (FIFO) Last-in, first-out (LIFO) weighted average cost Foodhack 9,120 X 8,336 Cost of Goods Sold 12,240 ✓ 9,240 12,04 ✔ TC My W Note that this exercise uses the periodic inventory system. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory costs for the period are calculated by taking the number of items remaining in the physical inventory times the most recent purchase price. If the number of items in last purchase layer is less than the number in ending inventory, the balance of the ending inventory items must be recorded at the second most recent purchase cost. The cost of merchandise sold for the period can be calculated by subtracting the ending inventory from the total cost of goods availate for sale
Transcribed Image Text:q'd) Homework LGO LGO XCEL ALGO EXCEL ALGO ALGO EXCEL ALGO ^ eBook Periodic inventory by three methods; cost of goods sold The units of an item available for sale during the year were as follows: Inventory Jan, 1 Mar. 10 Purchase Aug. 30 Purchase Dec. 12 Purchase 40 units at 596 70 units at $104 20 units at $112 70 units at $114 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by three methods. In your calculations round average unit cost to the nearest cent, and round all other calculations and your final answers to the nearest dollar. Show Me How Cost of Ending Inventory and Cost of Goods Sold Ending Inventory Inventory Method First-in, first-out (FIFO) Last-in, first-out (LIFO) weighted average cost Foodhack 9,120 X 8,336 Cost of Goods Sold 12,240 ✓ 9,240 12,04 ✔ TC My W Note that this exercise uses the periodic inventory system. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory costs for the period are calculated by taking the number of items remaining in the physical inventory times the most recent purchase price. If the number of items in last purchase layer is less than the number in ending inventory, the balance of the ending inventory items must be recorded at the second most recent purchase cost. The cost of merchandise sold for the period can be calculated by subtracting the ending inventory from the total cost of goods availate for sale
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