Question

Bramble Ltd. had a beginning inventory on January 1 of 250 units of product SXL at a cost of $161 per unit. During the year, purchases were as follows: Mar. 15 July 20 Sept. 4 Dec. 2 Units Unit Cost Total Cost 700 $151 $105,700 500 146 73,000 450 135 60,750 100 12,500 Bramble uses a periodic inventory system. At the end of the year, a physical inventory count determined that there were 200 units on hand. ✓ Your answer is correct. Determine the cost of goods available for sale. 292200 Cost of Goods Available for Sale e Textbook and Media x Your answer is incorrect. Determine the cost of the ending inventory and the cost of the goods sold using (1) FIFO and (2) average cost. (Do not round weighted average unit cost. Round Average answers to 2 decimal places, e.g. 5.25.) FIFO Average Ending Inventory $ 59750 146.1 Cost of Goods Sold $ 59750 29220

Answer 1

Solution

	FIFO		Average
Ending Inventory	$         26,000.00		$     29,220.00
Cost of Goods Sold	$       266,200.00		$ 262,980.00

Working

	Units	Cost per unit	value
Beginning Balance	250	$                 161.00	$ 40,250
Purchases
	700	$                 151.00	$ 105,700
	500	$                 146.00	$ 73,000
	450	$                 135.00	$ 60,750
	100	$                 125.00	$ 12,500
			$ 0
Total	2000		$ 292,200

.

Average Cost of Inventory
Units	(A)	2000
Total Cost	(B)	$ 292,200
Average Cost	(C=B/A)	$                 146.10

.

FIFO
Total Units Available for sale		2000
Units Sold		1800
Closing Stock in Units		200
Valuation
Ending Inventory	100	@	$           125.00	$ 12,500
	100	@	$           135.00	$ 13,500
Value Of Ending Inventory				$ 26,000
Cost of Goods sold				$ 266200.

.

Weighted Average method
Total Units Available for sale		2000
Units Sold		1800
Closing Stock in Units		200
Valuation
Ending Inventory	200	@	$           146.10	$            29,220
Value Of Ending Inventory				$            29,220
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$         262,980