Question

Scoresby Inc. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, 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. Units 4,000 Unit Cost $12 13 Transactions a. Inventory, Beginning For the year: b. Purchase, March 5 c. Purchase, September 19 d. Sale, April 15 (sold for $57 per unit) e. Sale, October 31 (sold for $60 per unit) f. Operating expenses (excluding income tax expense), $611,000 10,000 6,000 4,400 9,000 15 Required: 1. Calculate the number and cost of goods available for sale. Number of Goods Available for Sale Cost of Goods Available for Sale 20,000 units $ 268,000|

Answer 1

Weighted average takes intoa ccount weighted average for the purpose of calculations
Number of goods available	20000	units
Cost	268000
Ending Inventory	6600	Units
	Cost of Ending Inventory	Cost of goods sold
FIFO	97,800	170,200
LIFO	81,800	186,200
Weighted Average	88,440	179,560
Income Statement
	FIFO	LIFO	Weighted Average
Sales Revenue	790,800	790,800	790,800
Cost of goods sold	170,200	186,200	179,560
Gross Profit	620,600	604,600	611,240
Operating Expenses	611,000	611,000	611,000
Income Tax	-	-	-
Income from operations	9,600	(6,400)	240

C D 3 Weighted average takes intoa ccount weighted average for the purpose of calculations 4 units 5 Number of goods available 6 Cost 20000 268000 7 6600 Units Cost of Ending Inventory Cost of goods sold =6000*15+600*13 =$B$6-B11 =4000*12+2600*13 =$B$6-B12 =B6*6600/B5 =$B$6-B13 8 Ending Inventory 9 10 11 FIFO 12 LIFO 13 Weighted Average 14 15 Income Statement 16 17 Sales Revenue 18 Cost of goods sold 19 Gross Profit 20 Operating Expenses 21 Income Tax 22 Income from operations FIFO =4400*57+(9000*60) =C11 =B17-B18 611000 LIFO =B17 =C12 =C17-C18 611000 Weighted Average =C17 =C13 =D17-D18 611000 =B19-B20 =C19-C20 =D19-D20 22