Question

Monty Corp. had a beginning inventory of 95 units of Product RST at a cost of $8 per unit. During the year, purchases were: Feb. 20 578 units at $9 May 5 510 units at $10 Monty Corp. uses a periodic inventory system. Sales totaled 1,520 units Aug. 12 377 units at $11 Dec. 8 99 units at $12 ▼ (a) Your answer is correct. (a) Determine the cost of goods available for sale The cost of goods available for sale (b) Calculate Average Cost. (Round answer to 3 decimal places, e.g. 5.125.) 16397 Average Cost 9.884 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT VIDEO: SIMILAR PROBLEM Attempts: 1 of 3 used ▼ (b) Your answer is partially correct. Try again Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost) (Round answers to 0 decimal places, e.g. 150.) FIFO LIFO AVERAGE-COST The ending inventory 1668 1112 1374 The cost of goods sold 15285 $ 14729 15024

Answer 1

Cost of goods sold and ending inventory by FIFO and LIFO is as computed below:

FIFO
Date	Explanation	Units	Unit Cost	Cost
Jan-01	Opening Inventory	95	8	760
Feb-20	Purchased Inventory	578	9	5,202
May-05	Purchased Inventory	510	10	5,100
Aug-12	Purchased Inventory	377	11	4,147
Dec-08	Purchased Inventory	99	12	1,188
	Cost of goods available for sale (a)	1,659		16,397
	Cost of goods sold (b)
	Opening inventory sold	95	8	760
	Goods purchased on Feb 20 sold	578	9	5,202
	Goods purchased on May 5 sold	510	10	5,100
	Goods purchased on Aug 12 sold	337	11	3,707
		1,520		14,769
	Ending Inventory a-b
	Goods purchased on Aug 12	40	11	440
	Goods purchased on Dec 8	99	12	1,188
		139		1,628
LIFO
Date	Explanation	Units	Unit Cost	Cost
Jan-01	Opening Inventory	95	8	760
Feb-20	Purchased Inventory	578	9	5,202
May-05	Purchased Inventory	510	10	5,100
Aug-12	Purchased Inventory	377	11	4,147
Dec-08	Purchased Inventory	99	12	1,188
	Cost of goods available for sale (a)	1,659		16,397
	Cost of goods sold (b)
	Goods purchased on Dec 8 sold	99	12	1,188
	Goods purchased on Aug 12 sold	377	11	4,147
	Goods purchased on May 5 sold	510	10	5,100
	Goods purchased on Feb 20 sold	534	9	4,806
		1,520		15,241
	Ending Inventory a-b
	Goods purchased on Feb 20	44	9	396
	Opening inventory	95	8	760
		139		1,156