Question

Jessica's Office Supply, Inc., had 300 calculators on hand at January 1, 2017, costing $16 each. Purchases and sales of calculators during the month of January were as follows: Purchases Sales Date January 12 14 200 @ $25 150 @ $17 100 @ $18 29 30 150@ $30 Jessica does not maintain perpetual inventory records. According to a physical count, 200 calculators were on hand at January 31, 2017 Required: 1. What is the amount of ending inventory at January 31, 2017, and cost of goods sold for the month ended January 31, 2017, under the FIFO method? 2. What is the amount of ending inventory at January 31, 2017, and cost of goods sold for the month ended January 31, 2017, under the LIFO method? 3. What is the amount of ending inventory at January 31, 2017, and cost of goods sold for the month ended January 31, 2017, under the average cost method? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
could you please show me the steps on solving this question please?

Answer 1

Solution

	Cost of Ending inventory at Jan 31 2017	Cost of goods sold Jan 31 2017
FIFO	$                 3,500	$                   5,650
LIFO	$                 3,200	$                   5,950
Weighted average	$                 3,327	$                   5,823

Working

	Units	Cost per unit	value
Beginning Balance	300	$                   16.00	$ 4,800
Purchases
	150	$                   17.00	$ 2,550
	100	$                   18.00	$ 1,800
Total	550		$ 9,150

.Step 2

Average Cost of Inventory
Units	(A)	550
Total Cost	(B)	$ 9,150
Average Cost	(C=B/A)	$                   16.64

Step 3

FIFO
Total Units Available for sale		550
Units Sold		350
Closing Stock in Units		200
Valuation
Ending Inventory	100	@	$             18.00	$ 1,800
	100	@	$             17.00	$ 1,700
Value Of Ending Inventory				$              3,500
Cost of Goods sold				$              5,650
LIFO
Total Units Available for sale		550
Units Sold		350
Closing Stock in Units		200
Valuation
Ending Inventory	200	@	$             16.00	$ 3,200
Value Of Ending Inventory				$              3,200
Cost of Goods sold				$              5,950
Weighted Average method
Total Units Available for sale		550
Units Sold		350
Closing Stock in Units		200
Valuation
Ending Inventory	200	@	$             16.64	$              3,327
Value Of Ending Inventory				$              3,327
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$              5,823