Question

Scrappers Supplies 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 Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($37 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($37 each) Units Unit Cost 200 $21 350 23 (350) 250 (90) 27 TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of goods sold after ail of the purchases have occurred. Required: 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.) a Last-in, first-out LIFO (Periodic) Cost per Unit Units Total Beginning Inventory Purchases $ 0 March 2 June 30 Total Purchases 0 0 Goods Available for Sale Cost of Goods Sold Units from Beginning Inventory Units from March 2 Purchase Units from June 30 Purchase Total Cost of Goods Sold 0 0 Ending Inventory

Answer 1

2001 4200 LIFO ( Periodic) Cost Per # of Units Unit Total Beginning Inventory 21 Purchases Mar-02 350 23 Jun-30 250 27 Total Purchases 600 Goods Available for Sales 800 cost of Goods Sold Units from Beginning inventory 0 Units From March 2 Purchase 1901 Units From June 30 Purchases 250 Total Cost of Goods sold 440 Ending invntory 360 8050 6750 14800 19000 21 0V 23 4370 6750 11120 7880

Total 200 4200 Weighted Average (Periodic) Cost Per # of Units Unit Beginning Inventory 21 Purchases Mar-02 350 2 Jun-30 250 Total Purchases 600 Goods Available for Sales 800 cost of Goods Sold 440 23.75 Ending invntory 360 27 8050 6750 14800 19000 10450 8550

21 4200 27 FIFO ( Periodic Cost Per # of Units Unit Total Beginning Inventory 200 Purchases Mar-02 350 23 Jun-30 250 Total Purchases 600 Goods Available for Sales 800 cost of Goods Sold Units from Beginning inventory 200 21 Units From March 2 Purchase 240 23 Units From June 30 Purchases Total Cost of Goods sold 440 Ending invntory 360 8050 6750 14800 19000 4200 5520 0 27 9720 9280

Total 42001 23 250 Specific Identificatio ( Periodic) Cost Per # of Units Unit Beginning Inventory 2001 Purchases Mar-02 350 Jun-30 Total Purchases 600 Goods Available for Sales 800 cost of Goods Sold Units from Beginning inventory Units From March 2 Purchase 280 Units From June 30 Purchases Total Cost of Goods sold Ending invntory 8050 6750 14800 19000 70 1470 90 27 6440 2430 10340 8660 440 360