Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...

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Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing m

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the number of u

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the cost of end

business accounting

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Answer 1

Answer #1

Ans. 1	Transaction	Units (a)	Unit cost (b)	*Total (ab)**
	Beginning inventory (January 1)	140	$75.00	$10,500
	Purchase (January 15)	300	$85.00	$25,500
	Purchase (January 24)	240	$105.00	$25,200
	Available for sale	680		$61,200

	Number of goods available for sale = 680 units
	Cost of goods available for sale = $61,200

Ans. 2	Ending inventory units = Units available for sale - Total units sold
	680 - 270
	410 units

Ans. 3 a	Periodic FIFO:
	Date	Units	Rate	Total
	24-Jan	240	$105.00	$25,200
	15-Jan	170	$85.00	$14,450
	Ending inventory	410		$39,650

	Cost of goods sold = Total cost of goods available for sale - Ending inventory
	$61,200 - $39,650
	$21,550

	*In FIFO method the units that have purchased first, are released the first one and the ending inventory
	units remain from the last purchases.

Ans. 3 b	Periodic LIFO:
	Date	Units	Rate	Total
	1-Jan	140	$75.00	$10,500
	15-Jan	270	$85.00	$22,950
	Ending inventory	410		$33,450

	Cost of goods sold = Total cost of goods available for sale - Ending inventory
	$61,200 - $33,450
	$27,750

	*In LIFO method the units that have purchased last, are released the first one and ending inventory units
	remain from the first purchase.

Ans. 3 c	Weighted average cost:

	Average cost per unit = Total cost of goods available for sale / Total units available
	$61,200 / 680
	$90	per unit

	Ending inventory = Average cost per unit * Ending inventory units
	$90 * 410
	$36,900

	Cost of goods sold = Total cost of goods available for sale - Ending inventory
	$61,200 - $36,900
	$24,300

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Answer 2

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