Hatchet Corporation sells one product (using the periodic system of inventory) and had the following inventory...

Hatchet Corporation sells one product (using the periodic system of inventory) and had the following inventory transactions during the current month: Beginning Inventory 200 units costing $7 each Purchase on the 5th 600 units costing $8 each Purchase on the 17th 400 units costing $10 each Units sold during the month 900 units at a retail price of $15 each Answer the following questions in the space below. Calculate the cost of goods sold during the month using the Last-In-First-Out method of inventory allocation. Calculate the ending inventory balance (in dollars) using the Weighted-Average method of inventory allocation.

Expert Solution

using the periodic system of inventory

Calculate the cost of goods sold during the month using the Last-In-First-Out method of inventory allocation.

Date	Units	Cost	Total cost
Beginning	200	$7	$1400
5th	600	8	4800
17th	400	10	4000
Goods available for sales	1200		$10200
Cost of goods sold
From 17th layer	400	10	4000
From 5th layer	500	8	4000
Cost of goods sold			$8000

Calculate the ending inventory balance (in dollars) using the Weighted-Average method of inventory allocation.

Ending inventory units = Goods available for sales - Sold units

Ending inventory units = 1200 - 900 = 300 units

Date	Units	Cost	Total cost
Beginning	200	7	$1400
5th	600	8	4800
17th	400	10	4000
Total	1200		$10200
Average cost per units	10200 / 1200	= $8.5

	Units	Average cost per units	Total cost
Ending inventory balance	300	8.5	$2550

ekkarill92 answered 2 years ago

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