Question

Save & Ex Consider the following information for Maynor Company, which uses a periodic inventory system Transaction Beginning Inventory Purchase Purchase January 1 Units Unit Cost $ 67 73 Total Cost March 28 17 $1,139 1,971 2,618 3,237 August 22 October 14 27 34 77 Purchase 39 Goods Available for Sale 83 117 $8,965 The company sold 39 units on May 1 and 34 units on October 28 Required: Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods a. FIFO b. LIFO c. Weighted Average Complete this question by entering your answers in the tabs below. Required A Reauired B Reauired C

Answer 1

Correct Answer:

	FIFO	LIFO	Weighted Average
Cost of Goods Sold	$ 5,343.00	$ 5,855.00	$ 5,593.55
Ending Inventory	$ 3,622.00	$ 3,110.00	$ 3,371.45

Working:

	FIFO
A	Total Units Available for sale			117		$                         8,965.00
	Units Sold			73
	Ending Inventory Units			44
	Valuation
	Cost of Goods Sold		17		$                         67.00	$                         1,139.00
			27		$                         73.00	$                         1,971.00
			29		$                         77.00	$                         2,233.00
						$                                      -
						$                                      -
						$                                      -
B	Cost of Goods Sold		73	units		$                         5,343.00
A-B	Ending Inventory		44	units		$                         3,622.00

	LIFO
A	Total Units Available for sale						117			$                         8,965.00
	Units Sold						73
	Ending Inventory Units						44
	Valuation
	Cost of Goods Sold					39.00		$                         83.00		3,237.00
						34.00		$                         77.00		2,618.00
										-
										-
										-
										-
B	Cost of Goods Sold					73	units			$                         5,855.00
A-B	Ending Inventory					44	units			$                         3,110.00
Weighted Average Cost Per unit
Units			(A)	117
Total Cost			(B)	$                   8,965.00
Average Cost			(C=B/A)	$                         76.62

	Weighted Average
A	Total Units Available for sale			117		$                         8,965.00
	Units Sold			73
	Ending Inventory Units			44
	Valuation
	Cost of Goods Sold		73		$                         76.62	$                         5,593.26
B	Cost of Goods Sold		73	units		$                         5,593.26
A-B	Ending Inventory		44	units		$                         3,371.74

End of answer.

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