Question

Date Units Unit Cost Total Cost Beginning Inventory Purchase January 1 January 15 January 24 $ 80 140 $11,200 29,700 27,500 330 90 Purchase 250 110 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c methods. Cost of Ending Inventory Cost of Goods Sold FIFO LIFO Weighted Average Cost < Required 2 Required 3 <Prev 2 of 8 Next>

units sold is 290

Answer 1

1.

	Units	Rate	Amount
Beginning inventory	140	$     80	$   11,200
January 15 purchases	330	$     90	$   29,700
January 24 purchases	250	$   110	$   27,500
Number and cost of goods available for sale	720		$   68,400

2.

Number of units available for sale	720
Less: Number of units sold	(290)
Numbe of units in ending inventory	430

3.

FIFO Method

	Units	Rate	Amount
Sale from beginning inventory	140	$   80	$   11,200
Sale from January 15th purchase	150	$   90	$   13,500
Cost of goods sold	290		$   24,700

	Units	Rate	Amount
Balance from January 15th purchase	180	$     90	$   16,200
Balance from January 24th purchase	250	$   110	$   27,500
Ending inventory	430		$   43,700

LIFO Method

	Units	Rate	Amount
Sale from January 24th inventory	250	$   110	$   27,500
Sale from January 15th purchase	40	$     90	$     3,600
Cost of goods sold	290		$   31,100

	Units	Rate	Amount
Balance from January 15th purchase	290	$     90	$   26,100
Balance from Beginning inventory	140	$     80	$   11,200
Ending inventory	430		$   37,300

Weighted average method

Weighted average cost per unit = Cost of goods available for sale / Number of units available for sale

Weighted average cost per unit = $68,400/720

Cost of goods sold = 290*$95

Cost of goods sold = $27,550

Ending inventory = 430*$95

Ending inventory = $40,850

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