Question

Clor Company uses a periodic inventory system. At December 31, 2017, the accounting records provided the following information for Product 1:

  

	Units	Unit Cost
Inventory, December 31, 2016	3,000	$	8
For the year 2017:
Purchases, March 31	5,000		9
Purchases, August 1	2,000		7
Inventory, December 31, 2017	4,000

   

Required:

Compute the cost of sales and the ending inventory under the FIFO and weighted-average costing methods.

Answer 1

Periodic : FIFO Inventory Balance Cost Per Ending Unit Goods Purchasd Cost of Goods Sold Cost of #of Units cost of Goods # of Units Cost Per Unit Available for sales Cost Per Unit Goods Sold #of Units sold Inventory Beginning inventory| Purchases 24000 3000 8 24000 3000 8 0 5000 45000 Mar-31 3000 9 27000 2000 18000 Aug-01 2000 7 14000 0 7 0 2000 7 14000 Totals 6000 51000 10000 83000 4000 32000 Periodic: Weighted Average Inventory Balance Cost Per Ending Inventory Cost of Goods Sold Goods Purchasd # of Units Cost of cost of Goods # of Units Cost Per Unit of Units Cost Per Unit Available for sales sold Goods Sold Unit Beginning inventory 3000 8 24000 Purchases Mar-31 5000 45000 9 Aug-01 2000 7 14000 Totals 83000 8.300 49800 10000 8.300 6000 4000 8.300 33200 Weighted Average Cost FIFO Cost of Goods Sold 51000 49800 Ending Inventory 33200 32000