Kingsley Company uses the periodic inventory system to account for its inventories. Here are Kingsley’s inventory records for January and February of 2020: Date Event Quantity Cost per Unit Total Cost January 1 Inventory on hand 15 units $10/unit $150 8 Purchase 20 units $11/unit $220 12 Purchase 40 units $12/unit $480 29 Purchase 50 units $13/unit $650 31 Ending inventory 20 units ? ? February 8 Purchase 15unit $14/unit $210 15 Purchase 40units $15/unit $600 22 Purchase 25units $16/unit $400 28 Ending Inventory 24 units ? ?Required:1.Assume that Kingsley has consistently used the FIFO method. Compute the total cost of the 24 units in the ending inventory as of February 28, and compute the cost of goods sold for the month of February(only). 2.Assume that Kingsley has consistently used the LIFO method. Compute the total cost of the 24 units in the ending inventory as of February 28, and compute the cost of goods sold for the month of February(only). 3.Assume that Kingsley has consistently used the Weighted Average Cost method. Compute the total cost of the 24 units in the ending inventory as of February 28, and compute the cost of goods sold for the month of February(only).
Kingsley Company uses the periodic inventory system to account for its inventories. Here are Kingsley’s inventory records for January and February of 2020:
Date Event Quantity Cost per Unit Total Cost
January 1 Inventory on hand 15 units $10/unit $150 8 Purchase 20 units $11/unit $220
12 Purchase 40 units $12/unit $480
29 Purchase 50 units $13/unit $650 31 Ending inventory 20 units ? ?
February 8 Purchase 15unit $14/unit $210 15 Purchase 40units $15/unit $600
22 Purchase 25units $16/unit $400
28 Ending Inventory 24 units ? ?Required:1.Assume that Kingsley has consistently used the FIFO method. Compute the total cost of the 24 units in the ending inventory as of February 28, and compute the cost of goods sold for the month of February(only).
2.Assume that Kingsley has consistently used the LIFO method. Compute the total cost of the 24 units in the ending inventory as of February 28, and compute the cost of goods sold for the month of February(only). 3.Assume that Kingsley has consistently used the Weighted Average Cost method. Compute the total cost of the 24 units in the ending inventory as of February 28, and compute the cost of goods sold for the month of February(only).
Step by step
Solved in 4 steps
