Question

You have the following information for Skysong, Inc. for the month ended October 31, 2022. Skysong uses a periodic method for inventory. Date Description Units Unit Cost or Selling Price Oct. 1 Oct. 9 Oct. 11 Oct. 17 Oct. 22 Beginning inventory Purchase Sale Purchase Sale Oct. 25 Purchase Oct. 29 Sale Calculate the weighted-average cost. (Round answer to 3 decimal places, eg. 5.125.) Weighted average cost per unit $ 35.833 eTextbook and Media List of Accounts Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 0 decimal place, e.g. 125.) LIFO FIFO AVERAGE-COST The ending inventory $ The cost of goods sold $ Gross profit

Answer 1

	Units	Unit cost	Total
Oct 1	60	26	1560
Oct 9	130	28	3640
Oct 17	90	29	2610
Oct 25	70	31	2170
Total	350		9980
Total sales units	250	=90+60+100
Sales value	10800	=(90*40)+(60*45)+(100*45)
Ending inventory units	100	=350-250
1
Weighted average cost per unit	28.514	=9980/350
2
LIFO:
The ending inventory	2680	=(60*26)+(100-60)*28
The cost of goods sold	7300	=9980-2680
Gross Profit	3500	=10800-7300
FIFO:
The ending inventory	3040	=(70*31)+(100-70)*29
The cost of goods sold	6940	=9980-3040
Gross Profit	3860	=10800-6940
Average-Cost:
The ending inventory	2851	=100*28.514
The cost of goods sold	7129	=9980-2851
Gross Profit	3671	=10800-7129