Question

Inventory Costing Methods

Morrison Inc. reported the following information for the month of August:

Inventory, August 1		61 units @ $26
Purchase:
August 7		56 units @ $27
August 18		65 units @ $29
August 27		43 units @ $30

During August, Morrison sold 143 units. The company uses a periodic inventory system.

Required:

What is the value of ending inventory and cost of goods sold for August under the following assumptions.

Assumption	Cost of Goods Sold	Ending Inventory
1. Of the 143 units sold, 51 cost $26, 39 cost $27, 49 cost $29, and 4 cost $30.	$	$
2. FIFO	$	$
3. LIFO	$	$
4. Weighted average method (Round average unit cost to the nearest cent, and round all other calculations and your final answers to the nearest dollar.)	$

Answer 1

solution Total cost 1,586 unit unit cost Inventory, August1 Purchase 61 26 Aug-07 Aug-18 Aug-27 56 65 43 225 27 29 1,512 1,885 Goods available for sale 6,273 Average cost 6273/225 units in ending inventory-225-143 27.88 82 Assumption 1. Of the 143 units sold, 51 cost $26, 39 cost $27, 49 cost $29, and 4 cost $30 Cost of Goods Sold Ending Inventory 2,353 3920 (51 26+39*27+49*29+4*30)(6273-3920) 2. FIFO 3852 2,421 (1586+1512+26*29) (6273-3852) 3. LIFO 4120 2,153 (1290+1885+35*27) (6273-2153 4. Weighted average method (Round average unit cost to the nearest cent 3987 2,286 143 27.88 6273-3987 Sheet1 106 Sheetl 107 Sheet1 108Sheet1 109 Sheet1 110 Sheet1 111 Sheet1112 Sheet1113 ENG US 09/01/2019 11:06