Question

View Policies Current Attempt in Progress Marin Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 74 units were sold. Date Explanation Units Unit Cost 35 May 1 15 Inventory Purchase Total Cost $350 275 24 Purchase 480 $1,105 Total Calculate the weighted average unit cost. (Round answer to 3 decimal places, s. 5.125.) Weighted average unit cost $ eTextbook and Media Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round answers to O decimal places, s. 125.) FIFO LIFO AVERAGE-COST The ending inventory at May 31 $

Answer 1

Answer

• Weighted Average unit cost = $ 11.05

Average Method	Cost of Goods available for sale
	Units	Cost/unit	COG for sale
Beginning Inventory	35	$                10.00	$                            350.00
Purchases:
15-May	25	$                11.00	$                            275.00
24-May	40	$                12.00	$                            480.00
TOTAL	100	$            11.0500	$                        1,105.00

• Other requirement

	FIFO	LIFO	Weighted Average
Ending Inventory	$          312.00	$                  260.00	$                     287 [26 units x $ 11.05]

• Workings

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	35	$                10.00	$                            350.00	35	$               10.00	$                     350.00	0	$                 10.00	$                         -
Purchases:
15-May	25	$                11.00	$                            275.00	25	$               11.00	$                     275.00	0	$                 11.00	$                         -
24-May	40	$                12.00	$                            480.00	14	$               12.00	$                     168.00	26	$                 12.00	$                312.00
TOTAL	100		$                        1,105.00	74		$                     793.00	26		$                312.00
LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	35	$                10.00	$                            350.00	9	$               10.00	$                       90.00	26	$                 10.00	$                260.00
Purchases:
15-May	25	$                11.00	$                            275.00	25	$               11.00	$                     275.00	0	$                 11.00	$                         -
24-May	40	$                12.00	$                            480.00	40	$              12.00	$                     480.00	0	$                 12.00	$                         -
TOTAL	100		$                        1,105.00	74		$                     845.00	26		$                260.00