Question

Inventory Costing Methods-Periodic Method The following information is for the Bloom Company for 2012; the company sells just one product: Units Unit Cost Beginning Inventory 200 $70 Purchases: Feb. 11 500 $74 May 18 400 76 Oct. 23 100 80 At December 31, 2012, there was an ending inventory of 360 units. Assume the use of the periodic inventory method. Calculate the value of ending inventory and the cost of goods sold for the year using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost method. Round your answers to the nearest dollar.

Answer 1

Beginning Inventory	200
11-Feb	500
18-May	400
23-Oct	100
Total Inventory	1200
Less: Ending Inventory	360
Inventory Sold	840

FIFO
Date	Units	Cost($)	Total Cost($)
Beginning Inventory	200	70	14000
11-Feb	500	74	37000
18-May	140	76	10640
Cost of Goods Sold	840		$61640

FIFO
Date	Units	Cost($)	Total Cost($)
18-May	260	76	19760
23-Oct	100	80	8000
Cost of Ending Inventory	360		$27760

LIFO
Date	Units	Cost($)	Total Cost($)
23-Oct	100	80	8000
18-May	400	76	30400
11-Feb	340	74	25160
Cost of Goods Sold	840		$63560

LIFO
Date	Units	Cost($)	Total Cost($)
11-Feb	160	74	11840
Beginning Inventory	200	70	14000
Cost of Ending Inventory	360		$25840

weighted-average cost

Total Cost Of Inventory/Total Units

89400/1200

=$75

weighted-average cost method
Date	Units	Cost($)	Total Cost($)
Cost of Goods Sold	840	$75	$62580

weighted-average cost method
Date	Units	Cost($)	Total Cost($)
Cost of Ending Inventory	360	$75	$26820