Question

Seminole Company began the year with 29,500 units of product in its January 1 inventory costing $16.90 each. It made purchases of its product during the year as follows. The company uses a periodic inventory system. On December 31, a physical count reveals that 54,000 units of its product remain in inventory. Mar. May Aug. Nov. 7 47,000 units @ $19.90 each 25 49,000 units @ $23.90 each 1 39,000 units @ $25.90 each 10 42,500 units @ $28.90 each Required: 1. Compute the number and total cost of the units available for sale during the year. 2. Compute the amounts assigned to ending inventory and the cost of goods sold using (a) FIFO, (b) LIFO, and (c) weighted average. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the number and total cost of the units available for sale during the year. units Total units available for sale Total cost of units available for sale

If someone could explain how to get this it would be very beneficial thank you

Answer 1

Solution

Total Units Available for sale	207000
Total cost of units available for sale	$ 4,843,300

.

	FIFO	LIFO	Weighted Average
Total cost of units available for sale	$ 4,843,300	$           4,843,300	$     4,843,300
Ending Inventory	$ 1,526,100	$              986,100	$     1,263,470
Cost of Goods Sold	$ 3,317,200	$           3,857,200	$     3,579,830

Working

	Units	Cost per unit	value
Beginning Balance	29500	$                   16.90	$ 498,550
Purchases
	47000	$                   19.90	$ 935,300
	49000	$                   23.90	$ 1,171,100
	39000	$                   25.90	$ 1,010,100
	42500	$                   28.90	$ 1,228,250
Cost of goods available for sale	207000		$ 4,843,300

.

Average Cost of Inventory
Units	(A)	207000
Total Cost	(B)	$ 4,843,300
Average Cost	(C=B/A)	$ 23.40

..

FIFO
Total Units Available for sale		207000
Units Sold		153000
Closing Stock in Units		54000
Valuation
Ending Inventory	42500	@	$             28.90	$      1,228,250
	11500	@	$             25.90	$         297,850
Value Of Ending Inventory				$      1,526,100
Cost of Goods sold	4843300 minus 1526100			$      3,317,200
LIFO
Total Units Available for sale		207000
Units Sold		153000
Closing Stock in Units		54000
Valuation
Ending Inventory	29500	@	$             16.90	$ 498,550
	24500	@	$             19.90	$ 487,550
Value Of Ending Inventory				$         986,100
Cost of Goods sold	4843300 minus 986100			$      3,857,200
Weighted Average method
Total Units Available for sale		207000
Units Sold		153000
Closing Stock in Units		54000
Valuation
Ending Inventory	54000	@	$             23.40	$      1,263,470
Value Of Ending Inventory				$      1,263,470
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$      3,579,830