Question

ter 5 31 $3.00 3 20 3.34 on January 9 Purchase on January 25

Answer 1

Answer

• All working forms part of the answer
• LIFO and Weighted Average method is asked in the question.
• Answer is provided as asked.
• LIFO Method (periodic)

LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	320	$3	960	170	$3	510	150	$3	$450
Purchases:
Jan-09	80	$8	640	80	$8	640	0	8	0
Jan-25	100	$9	900	100	$9	900	0	9	0
TOTAL	500		$2500	350		$2050	150		$450

• Weighted Average Method (periodic)

Weighted average price per unit = $2500/500 units = $5 per unit

	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost per unit	Cost of Goods Available for sale	Units Sold	Cost per unit	Cost of Goods Sold	Units	Cost per unit	Ending Inventory
Beginning Inventory	320	3	960
Purchases:
Jan-09	80	8	640
Jan-25	100	9	900
Total	500	5	$2500	350	5	$1750	150	5	$750