Question

Inventory Costing Methods Oppenheimer Inc. reported the following information for the month of October: Inventory, October 1 Purchase: October7 October 18 October 27 During October, Oppenheimer sold 132 units. The company uses a periodic inventory system Required What is the value of ending inventory and cost of goods sold for October under the following assumptions Assumption 1. Of the 132 units sold, 46 cost $26, 38 cost $28, 44 cost $29, and 4 cost $31 2. FIFO 3. LIFO 4. Weighted average method (Round average unit cost to the nearest cent, and round all other calculations and your final answers to the nearest dollar.) 55 units $26 54 units @ $28 59 units $29 42 units $31 Cost of Goods Sold Ending Inventory

Answer 1

Answer:

Beginning Inventory = 55 Units * $26 = $1,430

Cost of Purchases = (54 Units * $28) + (59 Units * $29) + (42 Units * $31)
Cost of Purchases = $1,512 + $1,711 + $1,302
Cost of Purchases = $4,525

Cost of Goods available for sale = Beginning Inventory + Cost of Purchases
Cost of Goods available for sale = $1,430 + $4,525
Cost of Goods available for sale = $5,955

Answer to Part 1.

Cost of Goods Sold = (46 Units * $26) + (38 Units * $28) + (44 Units * $29) + (4 Units * $31)
Cost of Goods Sold = $1,196 + $1,064 + $1,276 + $124
Cost of Goods Sold = $3,660

Ending Inventory = Cost of Goods available for Sale – Cost of Goods Sold
Ending Inventory = $5,955 - $3,660
Ending Inventory = $2,295

Answer to Part 2.

Cost of Goods Sold = (55 Units * $26) + (54 Units * $28) + (23 Units * $29)
Cost of Goods Sold = $1,430 + $1,512 + $667
Cost of Goods Sold = $3,609

Ending Inventory = Cost of Goods available for Sale – Cost of Goods Sold
Ending Inventory = $5,955 - $3,609
Ending Inventory = $2,346

Answer to Part 3.

Cost of Goods Sold = (42 Units * $31) + (59 Units * $29) + (31 Units * $28)
Cost of Goods Sold = $1,302 + $1,711 + $868
Cost of Goods Sold = $3,881

Ending Inventory = Cost of Goods available for Sale – Cost of Goods Sold
Ending Inventory = $5,955 - $3,881
Ending Inventory = $2,074

Answer to Part 4.

Weighted Average Cost per Unit = Cost of Goods available for Sale/ Units available for sale
Units available for sale = 55 Units + 54 Units + 59 Units + 42 Units = 210 Units
Weighted Average Cost per Unit = $5,955 / 210
Weighted Average Cost per Unit = $28.36

Cost of Goods Sold = 132 Units * $28.36
Cost of Goods Sold = $3,744

Ending Inventory = Cost of Goods available for Sale – Cost of Goods Sold
Ending Inventory = $5,955 - $3,744
Ending Inventory = $2,211