Question

Inventory Costing Methods - Periodic Method The Kali Company uses the periodic inventory system for its merchandise inventory. The June 1 inventory for one of the items in the merchandise inventory consisted of 60 units with a unit cost of $45. Transactions for this item during June were as follows: June 5 Purchased 40 units @ $50 per unit 13 Sold 50 units @ $95 per unit 25 Purchased 40 units @ $53 per unit 29 Sold 20 units@ $110 per unit Required a. Compute the cost of goods sold and the ending inventory cost for the month of June using the weighted average cost method. Round the cost per unit to 3 decimal places and round your final answers to the nearest dollar. b. Compute the cost of goods sold and the ending inventory cost for the month of June using the first-in, first-out method. C. Compute the cost of goods sold and the ending inventory cost for the month of June using the last-in, first-out method. a. Weighted Average Ending Inventory Cost of goods Sold $ b. First-in, First-out: Ending Inventory $ Cost of Goods Sold: $ C. Last-in, first-out: Ending Inventory $ Cost of Goods Sold: $

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Answer 1

The kali company Uses the periodicanventony systen Req weightea Average Ending inve ntory s 3410 COst of Giood sold $ 3410 Fist In fiast out: Endig Inventory P 3620 costof Giood sold F 3200 Last in fiast out S 3200 Endiy Inventory F 3620 costof Giood soid PRequired: t7OTOL Cost of G100ds avarlable for sale : 60 Units X Beginniay 2700 Purchased 4007its 2000 une-s F S3 re-CO 212.O puchased byne 25 -S260 $68 20 TOTCH COSTOC CrOods availabie For sale 1 endiry nventory TOTC availa6le for sale Sold onit 50+207 140-40 F0 0nits weighted AVg cost PeUnit (60440140) $48.914 C ntse X 48714 - Endiy Inventon COst Of GOod sold: 6820-34107 $ 3410 3 410

(47 FIFO June s Enaing Jnventony C40 unibx 53) t C30uits x 550) P 3620 Costof G10od sold $ 6820 P 3620 S 3200 (5T +h 5 June une LIFO BegJnvento Endiay nventory C60 units XSUS +C1Ounit X 50) F 3200 CostoF GOod Sord: f 6820 P 320O 8 .3620