Question

M7-10 Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under FIFO, LIFO, and Weighted Average Cost (Periodic Inventory) (LO 7-3] Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a periodic inventory system. The following are the transactions for the month of July. Unit Cost $20 July 1 July 5 July 13 July 17 July 25 July 27 22 Units 2,000 1,000 6,000 3,000 8,000 5,000 Beginning Inventory Sold Purchased Sold Purchased Sold 24 Calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircard uses (a) FIFO, (b) LIFO, or (c) weighted average cost. (Round "Cost per Unit" to 2 decimal places.) FIFO L IFO Weighted Average Cost Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold

Answer 1

	Units	Unit cost	Total
July 1	2000	20	40000
July 13	6000	22	132000
July 25	8000	24	192000
Total	16000		364000
Units sold	9000	=1000+3000+5000
Ending inventory	7000	=16000-9000
Average cost	22.75	=364000/16000
1
FIFO:
Cost of goods available for sale	364000
Ending inventory	168000	=7000*24
Cost of goods sold	196000	=364000-168000
2
LIFO:
Cost of goods available for sale	364000
Ending inventory	150000	=(2000*20)+(7000-2000)*22
Cost of goods sold	214000	=364000-150000
3
Weighted Average cost:
Cost of goods available for sale	364000
Ending inventory	159250	=7000*22.75
Cost of goods sold	204750	=364000-159250