Question

The beginning inventory was 320 units at a cost of $10 per unit. Goods available for sale during the year were 1,360 units at a total cost of $15,060. In May, 620 units were purchased at a total cost of $6,820. The only other purchase transaction occurred during October. Ending inventory was 580 units.

Required:

a. Calculate the number of units purchased in October and the cost per unit purchased in October.

b-1. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. (Enter all values as a positive value.)

	Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Inventory Balance # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory 320 $10 $3,200 Purchases: May 620 11 6,820 October 420 12 5,040 Total 1,360 $15,060 0 $0 0 $0

b-2. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. (Enter all values as a positive value.)

	Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Inventory Balance # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory $0 Purchases: May 0 October 0 Total 0 $0 0 $0 0 $0

Answer 1

A. UNITS PURCHASED IN OCTOBER IS 420 AT THE RATE OF $12 PER UNIT.

B-1 FIFO - FIRST IN FIRST OUT.

Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Inventory Balance # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory 320 $10 $3,200 320 $10 3200 0 0 0 Purchases: May 620 11 6,820 460(780-320) 11 5060 160 11 1760 October 420 12 5,040 420 12 5040 Total 1,360 $15,060 780 $8260 580 $6800 ending inventory = beginning inventory + Purchased -sold 580 = 320 + 1040-sold sold = 780

b-2. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. (Enter all values as a positive value.) LAST IN FIRST OUT

Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Inventory Balance # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beg. Inventory 320 $10 $3,200 0 0 0 320 10 3200 Purchases: May 620 11 6,820 360(780-420) 11 3960 260(620-360) 11 2860 October 420 12 5,040 420 12 5040 0 0 0 Total 1,360 $15,060 780 $9000 580 $6060