Unit Cost $ 3.00 Transactions Inventory, January 1 Sale, January 10 Purchase, January 12 Sale, January 17 Purchase, January 26 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. 3.50 Units Total Cost 190 $570 (160) 240 (140) 70 4.50 840 315
Unit Cost $ 3.00 Transactions Inventory, January 1 Sale, January 10 Purchase, January 12 Sale, January 17 Purchase, January 26 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. 3.50 Units Total Cost 190 $570 (160) 240 (140) 70 4.50 840 315
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
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![PB7-1 (Algo) Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory
System [LO 7-3]
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 $10 per unit.
Transactions
Inventory, January 1
Sale, January 10
Purchase, January 12
Sale, January 17
Purchase, January 26
Unit
Cost
$ 3.00
3.50
4.50
Units
190
(160)
240
(140)
70
Total Cost
$ 570
840
315
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F89074166-0d4c-48e0-98e3-d9e259c46989%2Fddc34e07-2bc6-4538-a93f-984217d85527%2F6dpgcda_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PB7-1 (Algo) Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory
System [LO 7-3]
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 $10 per unit.
Transactions
Inventory, January 1
Sale, January 10
Purchase, January 12
Sale, January 17
Purchase, January 26
Unit
Cost
$ 3.00
3.50
4.50
Units
190
(160)
240
(140)
70
Total Cost
$ 570
840
315
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.
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Req 1
Req 2A
Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January 31 under each of the
inventory costing methods. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar
amount.)
a. Weighted average cost
b. First-in, first-out
c. Last-in, first-out:
d. Specific identification
Req 2B
Amount of Goods
Available for Sale
1,725
1,725
1,725
1,725
$
$
$
$
Ending Inventory
Req 1
Cost of Goods
Sold
Req 2A
>
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