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 300 units.

	Date	Units			Unit Cost			Total Cost
Beginning Inventory	January 1		220		$	80		$	17,600
Purchase	January 15		310			90			27,900
Purchase	January 24		270			110			29,700

Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.

Answer 1

Cost of Ending inventory Cost of Goods sold FIFO 50400 24800 LIFO 42800 32400 Average Cost 47000 28200 Periodic : FIFO Inventory Balance Goods Purchasd Cost of Goods Sold Cost of cost of Goods # of Units Goods # of Units Cost Per Unit Available for sales sold Cost Per Unit Sold 220 17600 220 80 17600 # of Units Cost Per Ending Unit Inventory 80 0 80 Beginning onventory Purchases Jan-15 Jan-24 Totals 310 90 80 270 27900 29700 75200 110 7200 1100 24800 90 1101 230 270 500 20700 29700 50400 800 300

220 800 Periodic : LIFO Goods Purchasd Cost of Goods Sold Inventory Balance Cost of cost of Goods # of Units Goods Cost Per Ending # of Units Cost Per Unit Available for sales sold Cost Per Unit Sold # of Units Unit Inventory Beginning onventory 220 80 17600 0 800 80 17600 Purchases Jan-15 310 90 27900 90 2700 280 90 25200 Jan-24 270 110 297001 270 110L 29700 0 1101 Totals 752001 300 32400 500 42800 Periodic : Weighted Average Goods Purchasd Cost of Goods Sold Inventory Balance # of Cost of cost of Goods # of Units Cost Per Unit Units Cost Per Unit Goods # of Units Cost Per Ending Available for sales Unit Inventory sold Sold Beginning onventory 220 80 17600 Purchases Jan-15 310 90 27900 Jan-24 270 | 110 29700 Totals 800 94.000 752001 300 94.000 28200 500 94.000 47000 Weighted Average Unit Cost = ((75200/800) 94.000