Question

calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircarf uses (a) FIFO, (b) LIFO, or (c) weighted average cost.

Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a periodic inventory system. The following are the transactions for the month of July Units Unit Cost July 1 July 5 July 13 July 17 July 25 July 27 Beginning Inventory Sold Purchased Sold Purchased Sold 1.000 6,000 3.000 8,000 5,000 Calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircard uses (0) FIFO, (b) LIFO, or (c) weighted average cost. (Round "Cost per Unit" to 2 decimal places.) FIFO LIFO Weighted Average Cost Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold

Answer 1

Solution:

Computation of COGS and ending inventory - Periodic FIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	2000	$40.00	$80,000	2000	$40.00	$80,000.00	0	$40.00	$0.00
Purchases:
13-Jul	6000	$42.00	$252,000	6000	$42.00	$252,000.00	0	$42.00	$0.00
25-Jul	8000	$44.00	$352,000	1000	$44.00	$44,000.00	7000	$44.00	$308,000.00
Total	16000		$684,000	9000		$376,000.00	7000		$308,000.00

Computation of COGS and ending inventory - Periodic LIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	2000	$40.00	$80,000	0	$40.00	$0.00	2000	$40.00	$80,000.00
Purchases:
13-Jul	6000	$42.00	$252,000	1000	$42.00	$42,000.00	5000	$42.00	$210,000.00
25-Jul	8000	$44.00	$352,000	8000	$44.00	$352,000.00	0	$44.00	$0.00
Total	16000		$684,000	9000		$394,000.00	7000		$290,000.00

Computation of COGS and ending inventory - Periodic Weighted Average cost method
Particulars	Cost of goods available for sale			Cost of goods sold - Average cost			Ending Inventory - Average cost
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	2000	$40.00	$80,000
Purchases:
13-Jul	6000	$42.00	$252,000
25-Jul	8000	$44.00	$352,000
Total	16000	$42.75	$684,000	9000	$42.75	$384,750	7000	$42.75	$299,250