Question

Assume that Mug Shot Coffee Shop completed the following periodic inventory transactions for a line of merchandise inventory: (Click the icon to view the transactions.) Requirements 1. Compute ending merchandise inventory, cost of goods sold, and gross profit using the FIFO inventory costing method. 2. Compute ending merchandise inventory, cost of goods sold, and gross profit using the LIFO inventory costing method. 3. Compute ending merchandise inventory, cost of goods sold, and gross profit using the weighted average inventory costing method. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) Requirements 1., 2., and 3. Compute ending merchandise inventory, cost of goods sold, and gross profit using the (1) FIFO inventory costing method, (2) LIFO inventory costing method, and (3) weighted average inventory costing method. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) Begin by determining ending merchandise inventory and cost of goods sold under each of the three methods. Requirement 1. FIFO X Х Plus: i More Info Less: Jun. 1 Beginning merchandise inventory 16 units @ $ 17 each Cost of goods sold 12 Purchase 4 units @ $ 21 each 20 Sale 10 units @ $ 30 each 24 Purchase 18 units @ $ 24 each 29 Sale 19 units @ $ 30 each

Answer 1

D FIFO periodical Receipt Particular Qty Ivate Fin 1. Opening Stary 16 17 12 purchases 4 cost of goods sold Qty rate Endling Inventory Oty rate $ $ $ $ 272 16 17 l 272 21 84 4 21 84 24 Purchases 18 24 432 9 24 216 9 24 216 Total 572 - 216 2) LIFO periodical Particular Qty Jun 1. opening bal 16 12 Purchases 4 Receipt Irati $ Ending Inventory Cost of goods sold oty rato . $ 7 17 119 rate $ 17 272 9 17 153 4 al 84 4 21 - 84 432 24 Purchases 18 24 432 18 24 Total 635 1 153

(3) Cal cilation of Average cost per unit. Average cost Total cost Total No q units (16* $17) +(4x $21) +(18$24) 16+4 +18 = $788 38 = $ 20.8 Cost of goods sold units sold & Aug. Cost pee Unit = 29 units X $ 20.8 $ 603 Ending inventory Closing stock x Aug.cost per unit qunits X $20.8 $187. Calculation of gross profit Particular FIFO UFO Average cost soles 870 870 870 (10x30 19x30) (-) Cost of goods (572) sold (635) (603) Cross profit $298 $235 $267

Presentation in given format FIFO 272 Beginning Inventory Plus: Purchases on 12th Purchases on 24th 84 432 (216) Lens Ending inventory Cost of goods sold 572

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