Question

8:53 Description Please complete the inventory problems below: Description 1-AugBeginning Inventory #Units Unit Cost 200 $ 20.00 300 $ 25.00 2-Auginventory Purchased 3-AugInventory Purchased 350 $ 33 30.00 400 $ 35.00 4-AugInventory Purchased 1. First compute the total cost of units that are avaiable for sale during the month of August. 2. Compute the COGS for the sell of 900 units using the LIFO method. 3. Compute the COGS for the sell of 1000 units using the FIFO method. 4. Compute the COGS for the sell of 700 units using the Weighted Average method.

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

A B C D E Answer 2 Part 1) 3 Cost of units available for sale = no. of units* cost per unit 4 = (200*20)+(300*25)+(350*30)+(400*35) 5 = $ 36000 6 Thus the correct answer is $ 36000 8 Part 2) 9 Cost of goods sold LIFO 10 = No. of Units sold * Cost Per Unit 11 = (400*35)+(350*30)+(150*25) 12 = $ 28250 13 Thus the correct answer is $ 28250 14 15 Part 3) 16 Cost of goods sold FIFO 17 = No. of Units sold * Cost Per Unit 18 = (200*20)+(300*25)+(350*30)+(150*35) 19 = $ 27250 20 Thus the correct answer is $ 27250 22 Part 4) 23 Cost of goods sold Weighted Average 24 = No. of units sold * Average Price 25 = 700 * (36000/(200+300+350+400) 26 = 700 * 28.8 27 = $ 20160 28 Thus the correct answer is $ 20160