Question

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki's records show the following for the month of January. Sales totaled 240 units. Units Unit Cost 120 380 Total Cost 9,600 34,200 22,000 Date Beginning Inventory Purchase Purchase 80 90 January 1 January 15 January 24 200 110 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory 3. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods Cost of Ending Inventory Cost of Goods Sold FIFO LIFO Weighted Average Cost

Answer 1

		Oahu Kiki
1)	Date	Number	Cost	Total cost
	Beginning	120	80	9600
	Jan-15	380	90	34200
	Jan-24	200	110	22000
		700		65800
	Number	700	units
	Cost of goods available for sale	$      65,800.00
2)	Number of units in ending inventory
	Number of units available for sales	700
	Sales Units	-240
	Ending Inventory	460
3)	Cost of Ending inventory and cost of goods sold under FIFO Method
	Ending Inventory
	Date	Units	Cost	Total Cost
	24 th jan	200	$       110.00	$ 22,000.00
	15 th jan	260	$         90.00	$ 23,400.00
	Total	460		$ 45,400.00
	Cost of goods sold
	Date	Units	Cost	Total Cost
	01-Jan	120	$         80.00	$   9,600.00
	15 th jan	120	$         90.00	$ 10,800.00
	Total	240		$ 20,400.00
	Cost of Ending inventory and cost of goods sold under LIFO Method
	Ending Inventory
	Date	Units	Cost	Total Cost
	01-Jan	120	$         80.00	$   9,600.00
	15 th jan	340	$         90.00	$ 30,600.00
	Total	460		$ 40,200.00
	Cost of goods sold
	Date	Units	Cost	Total Cost
	24 th jan	200	$       110.00	$ 22,000.00
	15 th jan	40	$         90.00	$   3,600.00
	Total	240		$ 25,600.00
	Cost of Ending inventory and cost of goods sold under weighted average Method
	Date	Number	Cost	Total cost
	Beginning	120	$         80.00	$   9,600.00
	Jan-15	380	$         90.00	$ 34,200.00
	Jan-24	200	$       110.00	$ 22,000.00
		700		$ 65,800.00
	Average price per unit=Total cost/Number of units	($65800/700)=	$         94.00
	Ending Inventory=(460*$94)	$      43,240.00
	Cost of good sold=(240*$94)	$      22,560.00
		FIFO	LIFO	Weighted Average
	Ending Inventory	$      45,400.00	$ 40,200.00	$ 43,240.00
	Cost of goods sold	$      20,400.00	$ 25,600.00	$ 22,560.00