Question

P6A-37B (book/static) Question Help Right Now Electronic Center began October with 100 units of merchandise inventory that cost $70 each. During October, the store made the following purchases: E: (Click the icon to view the purchases.) Right Now uses the periodic inventory system, and the physical count at October 31 indicates that 130 units of merchandise inventory are on hand. Read the requirements. Requirement 1. Determine the ending merchandise inventory and cost of goods sold amounts for the October financial statements using the FIFO, LIFO, and weighted average inventory costing methods. FIFO Ending inventory Cost of goods sold Data Table - X Oct 3 12 18 35 units @ $ 45 units @ $ 75 units @ $ 82 each 84 each 90 each Print Done Enter any number in the edit fields and then click Check Answer.

Answer 1

FIFO:

Ending inventory = (75 X $90) + (45 X $84) + (10 X $82) = $11,350

Cost of goods sold = (100 X $70) + (25 X $82) = $9,050

LIFO:

Ending inventory = (100 X $70) + (30 X $82) = $9,460

Cost of goods sold = (75 X $90) + (45 X $84) + (5 X $82) = $10,940

Weighted average:

Weighted average cost per unit

= [(100 X $70) + (35 X $82) + (45 X $84) + (75 X $90)] / (100 + 35 + 45 + 75)

= $80

Ending inventory = 130 X $80 = $10,400

Cost of goods sold = 125 X $80 = $10,000