Question

The dexter company sells many products. Whamo is one of its popular items. below is an analysis of the inventory purchases and sales of Whamo for the month of March. Dexter Company uses the periodic inventory system.

Purchase Units / Unit Cost /Sales Units / Selling Price& Unit

1-Mar Beg Inventory 100 (PR) 60 (UC)

3- Mar 60(PU) 75 (UC)

4-Mar 70 (SU) 120 (SP/U)

10- Mar 200(PU) 82 (UC)

16- Mar   80(SU) 130 (SP/U)

19- Mar 80 (SU) 130 (SP/U)

25- Mar 50(SU) 130 (SP/U)

30- Mar 40(PU) 90 (UC)

Instructions : ( Show Computations)

A. using FIFO , calculate the ending inventory and the cost of goods sold for March

B. Using weighted Average , calculate the ending inventory and the cost of goods sold for March

C. Using LIFO, calculate the ending inventory and the cost of goods sold for March.

Answer 1

Dexter Company
In periodic inventory, dates are not considered for calculating cost of each sale, instead cost of goods sold is calculated at the end of period
Total units sold are = 280 units
FIFO ( periodic )
	Cost of goods available for sale			COGS			Ending Inventory
Date	No. of units	cost p.u	Cost of goods available for sale	No. of units	cost p.u	COGS	No. of units	cost p.u	Ending inventory
Beg. Inv.	100	60	6000	100	60	6000
Purchases	60	75	4500	60	75	4500
	200	82	16400	120	82	9840	80	82	6560
	40	90	3600				40	90	3600
	400		30500	280		20340	120		10160
LIFO ( periodic )
	Cost of goods available for sale			COGS			Ending Inventory
Date	No. of units	cost p.u	Cost of goods available for sale	No. of units	cost p.u	COGS	No. of units	cost p.u	Ending inventory
Beg. Inv.	100	60	6000				100	60	6000
Purchases	60	75	4500	40	75	3000	20	66	1320
	200	82	16400	200	82	16400
	40	90	3600	40	90	3600
	400		30500	280		23000	120		7320
Average cost ( periodic )
	Cost of goods available for sale			COGS			Ending Inventory
Date	No. of units	cost p.u	Cost of goods available for sale	No. of units	cost p.u	COGS	No. of units	cost p.u	Ending inventory
Purchases	100		6000
	60		4500
	200		16400
	40		3600
	400	76.25	30500	280	76.25	21350	120	76.25	9150