Question

hapter 610) Consider the following information for Maynor Company, which uses a periodic inventory system Total Cost Unit Cost $ 60 January 1 March 28 August 22 October 14 Goods Available for Sale Transaction Beginning Inventory Purchase Purchase Purchase 1,320 1.400 $5,220 The company sold 25 units on May 1 and 20 units on October 28 Required: Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods. (Round the per unit cost to 2 decimal places and then round your answers to the nearest whole dollar) a. FIFO b. LIFO c. Weighted Average Complete this question by entering your answers in the tabs below. Required A Required B Required C FIFO Ending Inventory Cost of Goods Sold Required B >

Answer 1

TA FIFO Stands for first in First out, It means what we purchased first, will sell first. Therefore the sales made on may ist (25 unik) cott would be from beginning inventory of lounits and 15 amits out of do unit from March 28 purchases, 5 unit o march 28 purchases are still in stock. and 20 units on sales on oct 28 would be from 5 units puffout foorn March 28 purchases and is unit out of 20 units from August 22 purchases, 5 units of Aug 22 purchases are still in stock, Costag Goods sold may 1 ) Beginning inventor -> loumit x 60 = 600 25 units from manch 28 purchase 15 unibx 66 = 990 October 28 from manch 28 puchaySanits X 66 = 33 0 dounit hom August 22 purchases +15 units x 70 = 1050 cost of Goods sold - 2970 in Ending Inventory 5 left out from August 22 pm + sunits X70 - 350 Octobe 14 purchases -> asunit * 76 = 1900 Ending inventory - FIFO ventory 2250 ods sold 2970 y2250

© LIFO Stands for "Last in first out". It means what we purchased recently will be sold Pisst. Therefore, as amit sales of may I would be bom 20 units of m2928 pmchases and 5 mit out of beginning Inventory s unit of beginning inventory are still instock- and 20 unit of oct 28 sales would be from octly purchase 5 unit of octly purchases are still in stock "Cost of Goods sold 25 unit manchas pinchas es 20 unit x 66 - 1320 may I | sunity Rosm beginning sunbx60 - 300 - Inventory 20 unh 20 unit rom octly Lounib x76 - 1520 Oct 28 purchases 1. Cost of Goods sold - 3140 Ending Inventory 15 uni'ts left fooon beginning investory + Sunitx 60 – 300 - August 22 punchases - - domnib x 70 -1400 sanit left from out14 pmchases sunib x76 - 380 Ending inventory - 2080 2080 LIFO Ending inventory Cost of Goods sold 3140

30 © weighted Average meflood Here will value the stock at weighted average cost-pes un' as bllows: opening / punch asy I sale Balance Jani Beginning contory I co 60 600 1 o 6o 600 manzo purchases 1 do 66 1320 -64 1920 kro+20) (1924/36) (600 +120) 64 1600 320 (25764) (5864) August 22 purchases 20 70 1400 125 68-80 1720 (20+5) (320+1400) Octly purchases | 25 76 9900 50 72.40 3620 (25+25) (3620/50) (1720 +1900) Oct 28 Saly 120 72.40 1448 1 30 72.40 (2172 (20x72-40) |150-20) (30#12:40) may sales - 64 Ending Instry Total = (3048 (1600+1448) Cost of Goods sold

weighted Average Ending inventory cost of Goods sold 2172 3048