E7-7 (Algo) Calculating Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO,...
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E7-7 (Algo) Calculating Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-3]
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kikis records show the following for the month of January. Sales totaled 260 units.
Date Units Unit Cost Total Cost Beginning Inventory January 1 220 $ 80 $ 17,600 Purchase January 15 480 90 43,200 Purchase January 24 200 110 22,000
Required:
- Calculate the number and cost of goods available for sale.
- Calculate the number of units in ending inventory.
- Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
Calculate the number and cost of goods avai Number of Goods Available for Sale Cost of Goods Available for Sale 2,225 units 1,157 $ Required 1 Required 2 Required 3 Calculate the number of unit Ending Inventory 1,068 units FIFO Cost of Ending Cost of Goods Inventory Sold $ 1,150 $ 1,075 $ 985 $ 1,240 $ 2,225 $ 1,095 LIFO Weighted Average Cost
E7-7 (Algo) Calculating Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-3]
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kikis records show the following for the month of January. Sales totaled 260 units.
| Date | Units | Unit Cost | Total Cost | |
|---|---|---|---|---|
| Beginning Inventory | January 1 | 220 | $ 80 | $ 17,600 |
| Purchase | January 15 | 480 | 90 | 43,200 |
| Purchase | January 24 | 200 | 110 | 22,000 |
Required:
- Calculate the number and cost of goods available for sale.
- Calculate the number of units in ending inventory.
- Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
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