Question

Learning Objective 7 Appendix 6A E6A-26 Comparing ending merchandise inventory, cost of goods gross profit using the periodic inventory system-FIFO, LIFO, and weighted average methods Assume that Jump Coffee Shop completed the following periodic inventory transactions for a line of merchandise inventory: 2. COGS $513 534 603 603 90 Jun. 1 Beginning merchandise inventory 17 units @ $ 15 each 12 Purchase 5 units @ $ 19 each 20 Sale 14 units @ $ 37 each 24 Purchase 11 units @ $ 23 each 29 Sale 13 units @ $ 37 each Requirements Guant X is-90 1. Compute ending merchandise inventory, cost of goods sold, and gross profit using the FIFO inventory costing method. 2. Compute ending merchandise inventory, cost of goods sold, and gross profit using the LIFO inventory costing method. hudbal 16 3. Compute ending merchandise inventory, cost of goods sold, and gross profit using the weighted average inventory costing method. (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar.) for

Answer 1

1.

FIFO
Cost of goods sold [603 - 138]	465
Ending inventory [6*23]	138
Gross Profit [999 - 465]	534

2.

LIFO
Cost of goods sold	513
Ending inventory [6*15]	90
Gross Profit [999 - 513]	486

3.

Weighted average
Average cost per unit [603/33]	18.27
Cost of goods sold	493
Ending inventory [6*18.273]	110
Gross Profit [999 - 493]	506

Workings:

Units on hand	Units	Per unit	Total cost
Beginning inventory	17	15	255
Purchase on 12	5	19	95
Purchase on 24	11	23	253
Total	33		603
Units sold
On 20	14	37	518
On 29	13	37	481
Total	27		999
Ending inventory	6