Question

LO2 5684. Inventory Costing Methods-Periodic Method The following data are for the Vista Company, which sells just one product: Unit Cost $10 14 Beginning inventory, January 1 ...................................... Purchases: February 11. May 18 .... October 23.... Sales March 1............................................ July 1 ...... 200 500 400 100 18 400 380 Calculate the value of ending inventory and cost of goods sold using the periodic method and (a) first-in, first-out, (b) last-in, first-out, and (c) weighted average cost method. Round your final answers to the nearest dollar.

Answer 1

Ending Inventory Cost of Goods Sold FIFO $ 7,240 $10,360 LIFO $ 5,540 $ 12,060 Weighted Average cost $ 6,160 $ 11,440 Notes: FIFO Method: Production Units =200+500+400+100=1200 Sales Units = 400+380 = 780 Ending Inventory Units = 1200-780 =420 Cost of Goods sold Particulars Units March. 1 200 March.1 200 July 1 300 July. 1 80 780 Ending Inventory Particulars Units May.18 320 October 23 100 420 Unit Cost $ 10 $ $ 14 $ $ 14 $ $ 17$ Total 2.000 2.800 4,200 1,360 10,360 S Total Unit Cost $ 17 $ 18 $ $ 5,440 1.800 7.240

LIFO Method: Cost of Goods sold Particulars March. 1 July. 1 Units 400 380 780 Unit Cost $ 14 $ 17 $ $ $ Total 5,600 6,460 12.060 Total Ending Inventory Particulars Beginning Inventory, January. 1 February, 11 May. 18 October 23 Units 200 100 20 100 420 Unit Cost $ 10 $ 14 $ 17 $ 18 $ $ $ $ 2,000 1,400 340 1,800 5,540 Total 2.000 7,000 6,800 1.800 17,600 400 Weighted Average Cost Method Weighted Avearge Unit Cost Particulars Units Unit Cost Beginning Inventory, January. 1 200 $ 10 $ February. 11 500 $ 14 $ May. 18 IS171 October 23 100 $ 18 $ 1200 Unit Cost = Total Cost/No of Units avialble for Sales - $17,600/1200 = $14.67 Cost of Goods Sold = 780*$14.67 = $11,440 Ending Inventory = 420*$14.67 = $6,160 TS