Question

eBook Calculator Hurst Company's beginning inventory and purchases during the fiscal year ended December 31, 20-2, are shown. January 1, 20-2 Beginning inventory January 12 1st purchase February 28 2nd purchase June 29 3rd purchase August 31 4th purchase October 29 Sth purchase November 30 6th purchase December 21 7th purchase Units Unit Price Total Cost 1,500 $10.00 $15,000 500 11.50 5,750 600 14.50 8,700 1,200 15.00 18,000 800 16.50 13,200 300 18.00 5,400 700 18.50 12,950 400 20.00 8,000 6,000 $87,000 There are 1,200 units of inventory on hand on December 31, 20-2. Required: 1. Calculate the total amount to be assigned to the cost of goods sold Yor 20-2 and ending inventory on December 31 under each of the following periodic Inventory methods: Cost of Goods Cost of Ending Sold Inventory a. FIFO b. LIFO c. Weighted average (round calculations to two decimal places) Previous Check My Work 5 more Check My Work uses remaining Email Instructor Save and Exit All work saved. Submit Assignment for Grading 0 A dtv AN

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Answer 1

Answer

1 FIFO Unit of Inventory in hand on December 31.2012 Unit Date Dec-21 Nov-30 Oct-29 Unit price Cost Remaining 4001 $ 20.00 $ 8,000 700 $ 18.50 $ 12,950 100 $ 18.00 $ 1,800 $ 22,750 $ 87,000 $ 64,250 =87000-22750 800 = 1200-400 100=800-700 0 Total Cost Cost of Good sold LIFO Unit of Inventory in hand on December 31.2012 Unit Date Jan-01 Unit price 1200 Cost 10 $ $ Remaining 12,000 12,000 0= 1200-1200 Total Cost Cost of Good sold s S 87,000 75,000 =87000-12000 Weighted Average $ Total Cost Total Unit Rate per Unit 87,000 6000 14.50 =87000/6000 $ ending stock unit Cost of ending stock 1200 17,400 = 1200*14.5 $ Unit Sold Cost of Good sold 4800 =6000-1200 69,600 =4800*14.5 $ a FIFO b) LIFO c Weighted Average Cost of Good Cost of Ending sold Inventory S 64,250 S 22.750 75,000 $ 12,000 69,600 $ 17,400 GU

2 FIFO Cost of Ending Lower Of Cost Market Price Inventory or market $ 21,600 $ 22.750 S 21,600 =1200*18 S 21,600 $ 17.400 S 17,400 =1200218 Weighted Average 3 Net Sale Gross Profit rate Cost of Good sold 100000 35% 65000 =100000(100%-35%) Total Cost S Cost of estimated Inventory S 87,000 22,000 =87000-65000

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