Question

Problem 6-03A a, b1-b2, с (Video) Ziad Company had a beginning inventory on January 1 of 150 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made. Mar. 15 July 20 400 units 250 units at at $23 $24 Sept. 4 Dec. 2 350 units 100 units at at $26 $29 1,000 units were sold. Ziad Company uses a periodic inventory system. Determine the cost of goods available for sale. The cost of goods available for sale LINK TO TEXT Calculate average cost per unit. (Round answer to 2 decimal places, e.g. 2.23.) Average cost per units

Answer 1

	Qty	Rate	Amount
Opening Balance	150	20	3000
Mar 15.	400	23	9200
Jul-20	250	24	6000
Sep-04	350	26	9100
Dec-02	100	29	2900
Cost of goods avialable for sales	1250		30200
Cost of goods avialable for sales	$30200
Average cost per Unit =$30200/1250	24.16
FIFO Method
Goods available for sales	1250
Less No units Sold	1000
Closing Inventory in Units	250
Date of Purchase	Qty	Rate	Value
Dec-02	100	29	$   2,900.00
Sep-04	150	26	$   3,900.00
Cost of ending Inventory under FIFO Method			$   6,800.00
Cost of goods sold under FIFO Method =Cost of goods sold less Inventory at end =$30200-6800
			$ 23,400.00
LIFO Method
Date of Purchase	Qty	Rate	Value
Opening Balance	150	20	$   3,000.00
Mar 15.	100	23	$   2,300.00
Cost of ending Inventory under LIFO Method			$   5,300.00
Cost of goods sold under LIFO Method =Cost of goods sold less Inventory at end =$30200-5300
			$ 24,900.00
Cost of ending inventory under weighted average method= average cost per unit * ending inventory units =24.16*250=$6040
Cost of goods sold under weighted average method =no of units sold * average rate =1000*24.15=$24150
	FIFO	LIFO	Average cost
The ending Inventory	$   6,800.00	$             5,300.00	$6040
Cost of goods sold	$ 23,400.00	$           24,900.00	$24150
FIFO	results in Higher inventory amount $6800
LIFO	results in Highercost of goods sold $24900