**Inventory Costing Methods - Periodic Inventory System**There are 80 units of the item in physical inventory on December 31. The periodic inventory system is used.### Data Provided:- **Beginning Inventory:** - Units: 20 - Unit Cost: $50- **Purchase 1:** - Units: 30 - Unit Cost: $48- **Purchase 2:** - Units: 30 - Unit Cost: $47- **Total Sales for the Month:** - Units Sold: 80### Calculations:1. **Total Cost of Merchandise Purchased During the Year:** \[(20 \times 50) + (30 \times 48) + (30 \times 47)\] \[= 1000 + 1440 + 1410\] \[= 3850\]2. **Total Number of Units Available During the Month:** \[20 + 30 + 30 = 80\]3. **Cost of Goods Sold Under FIFO:** \[220 + 680 + 100 = 1000\]### Columns:- **Cost of Goods Sold Under FIFO**- **Cost of Goods Sold Under LIFO**- **Cost of Goods Sold Under Average Cost**- **Cost of the Ending Inventory under FIFO:** \[1950\]- **Cost of the Ending Inventory under LIFO:** *(Left Blank)*- **Cost of the Ending Inventory under Average Cost:** *(Left Blank)*### Explanation:The document outlines the inventory costing calculations using the FIFO (First-In, First-Out) method. Specific numbers of units and their respective costs are multiplied and added to determine the total cost of inventory purchased, and the cost of goods sold is calculated using FIFO assumptions. The report provides a framework for similar calculations using LIFO (Last-In, First-Out) and Average Cost methods, though they are not filled in on this form. ### Inventory Costing Methods - Perpetual Inventory SystemThe firm uses the perpetual inventory system.#### Inventory Transactions:- **July 1** - Beginning Inventory: 5,000 units at $100- **July 5** - Sale 1: 750 units- **July 15** - Purchase: 800 units at $105- **July 20** - Sale 2: 1,000 units- **July 25** - Purchase: 1,800 units at $110- **July 30** - Sale 3: 1,200 units#### Summary Tables:1. **Total Units Sold during the month** 2. **Total Number of Units Available during the month** 3. **Total Cost of Merchandise Purchased during the month** 4. **Total Units in Ending Inventory at July 31** 5. **Cost of Goods Sold for the month under FIFO** 6. **Cost of Goods Sold for the month under LIFO** 7. **Cost of Ending Inventory under FIFO** 8. **Cost of Ending Inventory under LIFO** *Note: The provided table includes spaces for filling in calculations based on the perpetual inventory method.*This template helps in calculating costs under different inventory valuation methods: First-In, First-Out (FIFO) and Last-In, First-Out (LIFO). The process involves determining the cost of goods sold and the value of ending inventory at the end of the month.

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Description: **Inventory Costing Methods - Periodic Inventory System**There are 80 units of the item in physical inventory on December 31. The periodic inventory system is used.### Data Provided:- **Beginning Inventory:** - Units: 20 - Unit Cost: $50- **Purcha

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There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Inventory Costing Methods - Periodic Inventory System Units Unit Cost 0 220 80 Beginning Inventory Purchase Purchase Purchase Total Sales for the month 100 320 units at units at units at Cost of Goods Sold under LIFO Total Cost of Merchandise Purchased during the year (220 x 50) + (80 x 48) + (100 x 47) = 19,540 Total Number of Units Available during the month 220+80+100 = 400 Cost of Goods Sold under FIFO $50 $48 $47 Cost of Goods Sold under Average Cost Cost of the Ending Inventory under FIFO Cost of the Ending Inventory under LIFO Cost of the Ending Inventory under Average Cost

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Inventory Costing Methods - Periodic Inventory System Units Unit Cost 0 220 80 Beginning Inventory Purchase Purchase Purchase Total Sales for the month 100 320 units at units at units at Cost of Goods Sold under LIFO Total Cost of Merchandise Purchased during the year (220 x 50) + (80 x 48) + (100 x 47) = 19,540 Total Number of Units Available during the month 220+80+100 = 400 Cost of Goods Sold under FIFO $50 $48 $47 Cost of Goods Sold under Average Cost Cost of the Ending Inventory under FIFO Cost of the Ending Inventory under LIFO Cost of the Ending Inventory under Average Cost

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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Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, January 31. The inventory's selling price is $14 per unit. Transactions Inventory, January 1 Unit Cost Units Total Cost $ 5.00 190 $ 950 Sale, January 10 (140) Purchase, January 12 5.50 Sale, January 17 Purchase, January 26 6.50 240 (100) 70 1,320 455 Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January 31 under each of the following inventory costing methods: a. Weighted average cost. b. First-in, first-out. c. Last-in, first-out. d. Specific identification, assuming that the January 10 sale was from the beginning inventory and the January 17 sale was from the January 12 purchase. 2-a. Of the four methods, which will…
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