Question

Inventory Costing Methods-Periodic Method Archer Company is a retailer that uses the periodic inventory system

August	1	Beginning Inventory	150	Units of product A @	$1700	total cost
	5	Purchased	170	Units of product A @	$2716	total cost
		purchased	270	Units of product A @	$5716	total cost
		Sold	230	Units of product A @

Calculate the August cost of goods sold and the ending inventory at August 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.

Do not round until your final answers. Round your final answers to the nearest dollar.

Answer 1

Computation of ending inventory and cost of goods sold under Periodic Weighted average
(b ) Weigheted Average	Goods Available for sale	Cost of goods sold	Ending Inventory
	No. of Units	Cost Per unit	Cost of Goods Available for Sale	No. of Units sold	Average Cost	Cost of Goods sold	Ending Inventory Units	Average Cost	Ending Inventory Cost
Beginning Inventory	150	$170.00	$25,500.00
Purchases:
5-Aug	170	$271.00	$46,070.00
5-Aug	270	$571.00	$1,54,170.00
Total	590		$2,25,740.00	230	382.61	$88,000	360	382.61	$1,37,740
Average Cost per unit		382.61