Question

Problem 6-03A a, b1-b2, с (Video) Swifty Company had a beginning inventory on January 1 of 200 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made. Mar. 15 July 20 430 units 220 units at at $22 $23 Sept. 4 Dec. 2 300 units 100 units at at $24 $29 1,040 units were sold. Swifty Company uses a periodic inventory system. Your answer is correct. Determine the cost of goods available for sale. The cost of goods available for sale 28620 SHOW SOLUTION SHOW ANSWER LINK TO TEXT VIDEO: SIMILAR PROBLEM Your answer is correct. Calculate average cost per unit. (Round answer to 3 decimal places, e.g. 1.250.) Average cost per unit 22.896

Answer 1

	Units	Unit cost	Total cost
Beg. Inventory	200	20	4000
Mar 15	430	22	9460
July 20	220	23	5060
Sept 4	300	24	7200
Dec 2	100	29	2900
Total	1250		28620
Ending inventory units	210	=1250-1040
a
Cost of goods available for sale	28620
b
Average Cost per unit	22.896	=28620/1250
c
FIFO:
The ending inventory	5540	=(100*29)+(210-100)*24
The cost of goods sold	23080	=28620-5540
LIFO:
The ending inventory	4220	=(200*20)+(210-200)*22
The cost of goods sold	24400	=28620-4220
Average cost:
The ending inventory	4808	=210*22.896
The cost of goods sold	23812	=28620-4808
d
FIFO results in the highest inventory amount $5540
LIFO produces the highest cost of goods sold $24400