Question

Flora's Gifts reported the following current-month data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 74 units—57 units from the January 6 purchase, and 17 units from the January 25 purchase. Jan. 1 Beginning inventory 170 units @ $3.60 = $ 612.00 Jan. 6 Purchase 350 units @ $3.60 = 1,260.00 Jan. 17 Purchase 575 units @ $3.20 = 1,840.00 Jan. 25 Purchase 30 units @ $2.70 = 81.00 Totals 1,125 units $ 3,793.00 Required: Determine the cost assigned to ending inventory and to cost of goods sold for the following. (Round average cost per unit and final answers to 2 decimal places.)

Flora's Gifts reported the following current-month data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 74 units-57 units from the January 6 purchase, and 17 units from the January 25 purchase. Jan. 1 Beginning inventory Jan. 6 Purchase Jan. 17 Purchase Jan. 25 Purchase 170 units$3.60$ 612.00 350 units $3.601260.00 575 units $3.20,840.00 30 units $2.7081.00 $ 3,793.00 Totals 1,125 units Required Determine the cost assigned to ending inventory and to cost of goods sold for the following. (Round average cost per unit and final answers to 2 decimal places.) ing Cost of Goods Inventory Sold (a) Specific identification (b) Weighted average (c) FIFO (d) LIFO

Answer 1

Answers

--Requirement

	Ending Inventory	Cost of Goods Sold
Specific Identification	$                251.10	$            3,541.90
Weighted Average	$                249.38	$            3,541.87
FIFO	$                221.80	$            3,571.20
LIFO	$                266.40	$            3,526.60

--Working

Specific Identification	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	170	$                   3.60	$                            612.00	170	$           3.60	$              612.00	0	$           3.60	$                         -
Purchases:
06-Jan	350	$                   3.60	$                        1,260.00	293	$           3.60	$           1,054.80	57	$           3.60	$                205.20
17-Jan	575	$                   3.20	$                        1,840.00	575	$           3.20	$           1,840.00	0	$           3.20	$                         -
25-Jan	30	$                   2.70	$                              81.00	13	$           2.70	$                 35.10	17	$           2.70	$                  45.90
TOTAL	1125		$                        3,793.00	1051		$           3,541.90	74		$                251.10

Weighted Average Method	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	170	$                   3.60	$                            612.00
Purchases:
06-Jan	350	$                   3.60	$                        1,260.00
17-Jan	575	$                   3.20	$                        1,840.00
25-Jan	30	$                   2.70	$                              81.00
TOTAL	1125	$                3.37	$                        3,793.00	1051	$         3.37	$           3,541.87	74	$        3.37	$                249.38

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	170	$                   3.60	$                            612.00	170	$           3.60	$              612.00	0	$           3.60	$                         -
Purchases:
06-Jan	350	$                   3.60	$                        1,260.00	350	$           3.60	$           1,260.00	0	$           3.60	$                         -
17-Jan	575	$                   3.20	$                        1,840.00	531	$           3.20	$           1,699.20	44	$           3.20	$                140.80
25-Jan	30	$                   2.70	$                              81.00		$           2.70	$                        -	30	$           2.70	$                  81.00
TOTAL	1125		$                        3,793.00	1051		$           3,571.20	74		$                221.80

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	170	$                   3.60	$                            612.00	96	$           3.60	$              345.60	74	$           3.60	$                266.40
Purchases:	0	$                       -	$                                     -
06-Jan	350	$                   3.60	$                        1,260.00	350	$           3.60	$           1,260.00	0	$           3.60	$                         -
17-Jan	575	$                   3.20	$                        1,840.00	575	$           3.20	$           1,840.00	0	$           3.20	$                         -
25-Jan	30	$                   2.70	$                              81.00	30	$           2.70	$                 81.00	0	$           2.70	$                         -
TOTAL	1125		$                        3,793.00	1051		$           3,526.60	74		$                266.40