Question

Aircard corporation tracks the numbers of units purchased and sold throughout each accounting period but applies the inventory coating method at the end of each period as it uses a periodic inventory system The following transactions

July 1 Befinning inventory 2000 units cost 20.00

July 5th - Sold 1000 units

July 13th - purchased 6000 units cost 22.00

July 17 sold 3000

July 25 purchased 8000 units cost 24.00

July 27 sold 5000

Calculate the cost of goods available for sale , ending inventory, and cost of goods sold if Aircaes uses 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 $
1-Jul	2000	20	40000	2000	20	40000
Purchasse
13-Jul	6000	22	132000	6000	22	132000
25-Jul	8000	24	192000	1000	24	24000	7000	24	168000
TOTAL	16000		364000	9000		196000	7000		168000
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jul	2000	20	40000				2000	20	40000
Purchasse
13-Jul	6000	22	132000	1000	22	22000	5000	22	110000
25-Jul	8000	24	192000	8000	24	192000
TOTAL	16000		364000	9000		214000	7000		150000
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 $
1-Jul	2000	20	40000
Purchasse
13-Jul	6000	22	132000
25-Jul	8000	24	192000
TOTAL	16000	22.75	364000	9000	22.75	204750	7000	22.75	159250