Question

Jimmie’s Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June. Jimmie’s Fishing Hole uses a periodic inventory system.

Date	Transactions	Units	Cost per Unit	Total Cost
6/1	Beginning inventory	16	180	2880
6/7	Sale	11
6/12	Purchase	10	170	1700
6/15	Sale	12
6/24	Purchase	10	160	1600
6/27	Sale	8
6/29	Purcahse	8	150	1200
				Total Cost = 7380

Calculate ending inventory and cost of goods sold at June 30, using the specific identification method. The June 7 sale consists of fishing reels from beginning inventory, the June 15 sale consists of three fishing reels from beginning inventory and nine fishing reels from the June 12 purchase, and the June 27 sale consists of one fishing reel from beginning inventory and seven fishing reels from the June 24 purchase.  

Using FIFO, calculate ending inventory and cost of goods sold at June 30.

Using LIFO, calculate ending inventory and cost of goods sold at June 30.

Using weighted-average cost, calculate ending inventory and cost of goods sold at June 30.

Answer 1

		The ending Inventory	The cost of goods sold
Specific Identification	=	$       2,030	$            5,350
FIFO	=	$       2,000	$            5,380
LIFO	=	$       2,340	$            5,040
Weighted Average	=	$       2,180	$            5,200
Workings:
	Cost of goods available for sale			Cost of goods sold - Periodic			Ending Inventory
Specific Identification	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory      (A) - (B)	Cost per unit	Ending Inventory
Beginning Inventory	16	$           180	$            2,880	15	$           180	$            2,700	1	$         180	$                  180
Purchases:
Jun-12	10	$           170	$            1,700	9	$           170	$            1,530	1	$         170	$                  170
Jun-24	10	$           160	$            1,600	7	$           160	$            1,120	3	$         160	$                  480
Jun-29	8	$           150	$            1,200	-	$           150	$                   -	8	$         150	$              1,200
	44		$            7,380	31		$            5,350	13		$              2,030
	Cost of goods available for sale			Cost of goods sold - Periodic			Ending Inventory
FIFO	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory      (A) - (B)	Cost per unit	Ending Inventory
Beginning Inventory	16	$           180	$            2,880	16	$           180	$            2,880	-	$         180	$                     -
Purchases:
Jun-12	10	$           170	$            1,700	10	$           170	$            1,700	-	$         170	$                     -
Jun-24	10	$           160	$            1,600	5	$           160	$                800	5	$         160	$                  800
Jun-29	8	$           150	$            1,200	-	$           150	$                   -	8	$         150	$              1,200
	44		$            7,380	31		$            5,380	13		$              2,000
	Cost of goods available for sale			Cost of goods sold - Periodic			Ending Inventory
LIFO	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory      (A) - (B)	Cost per unit	Ending Inventory
Beginning Inventory	16	$           180	$            2,880	3	$           180	$                540	13	$         180	$              2,340
Purchases:
Jun-12	10	$           170	$            1,700	10	$           170	$            1,700	-	$         170	$                     -
Jun-24	10	$           160	$            1,600	10	$           160	$            1,600	-	$         160	$                     -
Jun-29	8	$           150	$            1,200	8	$           150	$            1,200	-	$         150	$                     -
	44		$            7,380	31		$            5,040	13		$              2,340
	Cost of goods available for sale			Cost of goods sold - Periodic			Ending Inventory
Weighted Average	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory      (A) - (B)	Cost per unit	Ending Inventory
Beginning Inventory	16	$           180	$            2,880
Purchases:
Jun-12	10	$           170	$            1,700
Jun-24	10	$           160	$            1,600
Jun-29	8	$           150	$            1,200
	44	$     167.73	$            7,380	31	$     167.73	$            5,200	13	$   167.73	$              2,180