Question

The following data are available for Sellco for the fiscal year ended on January 31, 2017:

The following data are available for Sellco for the fiscal year ended on January 31, 2017: Sales Beginning inventory Purchases, in chronological order 820 units 290 units 330 units 400 units 240 units @ $5 @ $6 Required: a. Calculate cost of goods sold and ending inventory under the cost flow assumptions, FIFO, LIFO and Weighted average (using a periodic inventory system): (Round unit cost to 2 decimal places.) Cost of Goods Sold Ending Inventory FIFO LIFO Weighted average b. Assume that net income using the weighted-average cost flow assumption is $12,900. Calculate net income under FIFO and LIFO. (Round unit cost to 2 decimal places.) Net Income FIFO LIFO

Answer 1

Answers: Method FIFO LIFO Weighted Average Cost of Goods Sold 3720 5220 4453 Edning invenotry 3120 1620 2389 Net income = Sales Revenue - Cost of Goods Sold Net income Under Weighted Averrage cost = 12,900 Sales Revenue = 12900+4453 = 17353 Net income for FIFO and LIFO Net income 17353-3720 13633 17353-5220 12133 FIFO = LIFO Periodic: FIFO Goods Purchasd Cost of Goods Sold cost of Goods Available # of Units Cost Per Cost of # of Cost Per Unit for sales sold Unit Goods Sold Units Inventory Balance Cost Per Ending Unit Inventory 290 3 870 290 3 870 0 3 # of Units Beginning inventory Purchases Mar-10 Aug-30 Dec-12 Totals 5 6 8 330 200 330 400 240 1260 5 6 1650 2400 1920 6840 1650 1200 0 3720 0 200 240 440 00 ou 8 0 1200 1920 3120 820

Periodic : LIFO Goods Purchasd Cost of Goods Sold Inventory Balance cost of Goods Available # of Units Cost Per Cost of # of Cost Per Ending # of Units Cost Per Unit for sales sold Unit Goods Sold Units Unit Inventory Beginning inventory 290 3 870 0 3 0 290 3 870 Purchases Mar-10 330 5 1650 180 5 900 150 5 750 Aug-30 400 6 2400 400 6 2400 0 6 0 Dec-12 240 8 1920 240 8 1920 0 8 0 Totals 1260 6840 820 5220 440 1620 Periodic : Weighted Average Goods Purchasd Cost Goods Sold Inventory Balance Cost cost of Goods Available # of Units Cost of # of Cost Per Ending # of Units Cost Per Unit Per for sales sold Goods Sold Units Unit Unit Inventory Beginning inven 290 3 870 Purchases Mar-10 330 5 1650 Aug-30 400 6 2400 Dec-12 240 8 1920 Totals 1260 5.43 6840 820 5.43 4453 440 5.430 2389 Per Unit Rate =6840/1260= 5.43