Question

Kingbird, Inc. had a beginning inventory on January 1 of 330 units of Product 4-18-15 at a cost of $22 per unit. During the year, the following purchases were made. Mar. 15 880 units at $25 Sept. 4 770 units at $28 July 20 550 units at $26 Dec. 2 220 units at $31 2,200 units were sold. Kingbird, Inc. uses a periodic inventory system. ▼ (a) Your answer is correct. Determine the cost of goods available for sale. The cost of goods available for sale71940 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT VIDEO: SIMILAR PROBLEM ▼ (62) Your answer is partially correct. Try again. Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average- cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round answers to o decimal places, e.g. 1,250.) LIFO FIFO AVERAGE-COST The ending inventory 16060 12760 The cost of goods sold Click if you would like to Show Work for this question: Open Show Work Attempts: 2 of 5 used SAVE FOR LATER SUBMIT ANSWER

Answer 1

Solution a:

Cost of goods available for sale
Particulars	Nos of units	Unit Cost	Cost of goods available for sale
Beginning inventory	330	$22.00	$7,260
Purchases:
15-Mar	880	$25.00	$22,000
20-Jul	550	$26.00	$14,300
4-Sep	770	$28.00	$21,560
2-Dec	220	$31.00	$6,820
Total	2750		$71,940

Solution b2:

Computation of COGS and ending inventory - Periodic FIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	330	$22.00	$7,260	330	$22.00	$7,260.00	0	$22.00	$0.00
Purchases:
15-Mar	880	$25.00	$22,000	880	$25.00	$22,000.00	0	$25.00	$0.00
20-Jul	550	$26.00	$14,300	550	$26.00	$14,300.00	0	$26.00	$0.00
4-Sep	770	$28.00	$21,560	440	$28.00	$12,320.00	330	$28.00	$9,240.00
2-Dec	220	$31.00	$6,820	0	$31.00	$0.00	220	$31.00	$6,820.00
Total	2750		$71,940	2200		$55,880.00	550		$16,060.00

Computation of COGS and ending inventory - Periodic LIFO
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	330	$22.00	$7,260	0	$22.00	$0.00	330	$22.00	$7,260.00
Purchases:
15-Mar	880	$25.00	$22,000	660	$25.00	$16,500.00	220	$25.00	$5,500.00
20-Jul	550	$26.00	$14,300	550	$26.00	$14,300.00	0	$26.00	$0.00
4-Sep	770	$28.00	$21,560	770	$28.00	$21,560.00	0	$28.00	$0.00
2-Dec	220	$31.00	$6,820	220	$31.00	$6,820.00	0	$31.00	$0.00
Total	2750		$71,940	2200		$59,180.00	550		$12,760.00

Computation of COGS and ending inventory - Periodic Weighted Average cost method
Particulars	Cost of goods available for sale			Cost of goods sold - Average cost			Ending Inventory - Average cost
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	330	$22.00	$7,260
Purchases:
15-Mar	880	$25.00	$22,000
20-Jul	550	$26.00	$14,300
4-Sep	770	$28.00	$21,560
2-Dec	220	$31.00	$6,820
Total	2750	$26.16	$71,940	2200	$26.16	$57,552	550	$26.16	$14,388