Periodic and Perpetual Systems-Calculating Ending Inventory and Cost of Sales Using Average Cost (Moving Average), FIFO, and LIFO Undew Inc.'s inventory records showed the following data for an item it sells regularly. Date Jan. 1 Inventory (beg.) Jan. 3 Purchases Unit Units Cost 3,200 $10.00 28,800 $10.40 9,600 $11.00 Jan. 7 Sales (at $26 per unit) 11,200 Jan, 20 Purchases Jan. 22 Sales (at $27 per unit) 25,600 Jan. 30 Purchases 4,800 $12.00 a. Assuming that Undew maintains a periodic inventory system, compute ending inventory and cost of goods sold for the month ending January 31 using (1) average cost, (2) FIFO, and (3) LIFO.
Periodic and Perpetual Systems-Calculating Ending Inventory and Cost of Sales Using Average Cost (Moving Average), FIFO, and LIFO Undew Inc.'s inventory records showed the following data for an item it sells regularly. Date Jan. 1 Inventory (beg.) Jan. 3 Purchases Unit Units Cost 3,200 $10.00 28,800 $10.40 9,600 $11.00 Jan. 7 Sales (at $26 per unit) 11,200 Jan, 20 Purchases Jan. 22 Sales (at $27 per unit) 25,600 Jan. 30 Purchases 4,800 $12.00 a. Assuming that Undew maintains a periodic inventory system, compute ending inventory and cost of goods sold for the month ending January 31 using (1) average cost, (2) FIFO, and (3) LIFO.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Periodic and Perpetual Systems-Calculating Ending Inventory and Cost of Sales Using Average Cost (Moving Average), FIFO, and LIFO
Undew Inc's inventory records showed the following data for an item it sells regularly.
Unit
Date
Jan. 1 Inventory (beg.)
Jan. 3 Purchases
Units Cost
3,200 $10.00
28,800 $10.40
Jan. 7 Sales (at $26 per unit) 11,200
Jan, 20 Purchases
9,600 $11.00
Jan. 22 Sales (at $27 per unit) 25,600
Jan. 30 Purchases
4,800 $12.00
a. Assuming that Undew maintains a periodic inventory system, compute ending inventory and cost of goods sold for the month ending January 31 using (1) average cost, (2) FIFO, and
(3) LIFO
b. Assuming that Undew maintains a perpetual inventory system, compute ending inventory and cost of goods sold for the month ending January 31 using (1) moving average, (2) FIFO,
and (3) LIFO.
Average cost (periodic)
FIFO (periodic)
LIFO (periodic)
Moving average (perpetual) FIFO (perpetual)
LIFO (perpetual)
(2) FIFO Method (periodic)
Note: Do not use negative signs with any of your answers.
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