Question

Scoresby Inc. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.

Transactions	Units			Unit Cost
a. Inventory, Beginning		1,500		$	30
For the year:
b. Purchase, March 5		7,500			31
c. Purchase, September 19		3,500			33
d. Sale, April 15 (sold for $75 per unit)		2,100
e. Sale, October 31 (sold for $78 per unit)		6,500
f. Operating expenses (excluding income tax expense), $393,000

  Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Balance	1500	30	45000	1500	30	45000
Purchasse
05-Mar	7500	31	232500	7100	31	220100	400	31	12400
19-Sep	3500	33	115500				3500	33	115500
TOTAL	12500		393000	8600		265100	3900		127900
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Balance	1500	30	45000				1500	30	45000
Purchasse
05-Mar	7500	31	232500	5100	31	158100	2400	31	74400
19-Sep	3500	33	115500	3500	33	115500
TOTAL	12500		393000	8600		273600	3900		119400
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Balance	1500	30	45000
Purchasse
05-Mar	7500	31	232500
19-Sep	3500	33	115500
TOTAL	12500	31.44	393000	8600	31.44	270384	3900	31.44	122616
			FIFO	LIFO	Average
Ending inventory cost	127900	119400	122616
Cost of goods sold		265100	273600	270384