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 50 units at $108 Mar. 10 70 units at $116 Aug. 30 Purchase 30 units at $120 Dec. 12 Purchase 50 units at $124 There are 60 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 othe calculations and your final answers to the nearest dollar. Inventory Purchase Cost of Ending Inventory and Cost of Goods Sold Inventory Method First-in, first-out (FIFO) Last-in, first-out (LIFO) Weighted average cost Ending Inventory Cost of Goods Sold 0001 000
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 50 units at $108 Mar. 10 70 units at $116 Aug. 30 Purchase 30 units at $120 Dec. 12 Purchase 50 units at $124 There are 60 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 othe calculations and your final answers to the nearest dollar. Inventory Purchase Cost of Ending Inventory and Cost of Goods Sold Inventory Method First-in, first-out (FIFO) Last-in, first-out (LIFO) Weighted average cost Ending Inventory Cost of Goods Sold 0001 000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text: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
Inventory
50 units at $108
Mar. 10
Purchase
70 units at $116
Aug. 30
Purchase
30 units at $120
Dec. 12
Purchase
50 units at $124
There are 60 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.
Cost of Ending Inventory and Cost of Goods Sold
Inventory Method
First-in, first-out (FIFO)
Last-in, first-out (LIFO)
Weighted average cost
Ending Inventory Cost of Goods Sold
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Step 1: Introduce to FIFO, LIFO AND WEIGHTED AVERAGE METHOD
VIEWStep 2: Working for cost of goods available for sale and number of units sold
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 method
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