Question

Required Information (The following information applies to the questions displayed below.) A company reports the following beginning inventory and two purchases for the month of January, On January 26, the company sells 380 units. Ending inventory at January 31 totals 150 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units Unit Cost 340$ 3.30 80 3.50 110 3.60 Required: Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method. Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Inventory Balance Cost per Cost per Cost of Goods # of Cost per Available for units unit Sale 3407 $ 3.30 $ 1,122 # of units sold unit Cost of Goods Sold # of units in ending Inventory 150 unit Ending Inventory $ 495 380 $ 3.30 $ 1.254 S 3.30 Beg. Inventory Purchases January 9 January 25 Total 80 910 3.50 3.60 ol 936 2,058 3.50 3.60 260 600 280 396 1.930 3.50 3.60 110 570 260 150 560 540 1,945 S $ $

Answer 1

FIFO	Cost of Goods Available for Sale			Cost of Goods Sold			Inventory on hand
Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
Beginning Inventory	340	$              3.30	$          1,122	340	$                3.30	$              1,122
Purchases
January 9	80	$              3.50	$             280	40	$                3.50	$                 140	40	$                3.50	$                 140
January 25	110	$              3.60	$             396				110	$                3.60	$                 396
Total	530		$          1,798	380		$             1,262	150		$                 536

LIFO	Cost of Goods Available for Sale			Cost of Goods Sold			Inventory on hand
Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
Beginning Inventory	340	$              3.30	$          1,122	190	$                3.30	$                 627	150	$                3.30	$                 495
Purchases
January 9	80	$              3.50	$             280	80	$                3.50	$                 280
January 25	110	$              3.60	$             396	110	$                3.60	$                 396
Total	530		$          1,798	380		$             1,303	150		$                 495

Weighted Average	Inventory on hand			Cost of Goods Sold
Activity	Units	Unit Price	Amount	Units	Unit Price	Amount
Beginning Inventory	340	$              3.30	$          1,122
Purchase - January 9	80	$              3.50	$             280
Purchase - January 25	110	$              3.60	$             396
Cost of Goods Available for Sale	530	$            3.392	$          1,798
January Sales				380	$ 3.392	$              1,289
Total	1060		$          3,596	380		$             1,289

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