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The Delta company uses a periodic inventory system. The beginning balance of inventory and purchases made...

  1. The Delta company uses a periodic inventory system. The beginning balance of inventory and purchases made by the company during the month of July, 2018 are given below: (1.5 pt)
  • July 01: Beginning inventory, 500 units @ $20 per unit.
  • July 18: Inventory purchased, 800 units @ $24 per unit.
  • July 25: Inventory purchased, 700 units @ $26 per unit.
  • July 29: Inventory purchased, 400 units @$25 per unit.

Ending Inventory on July 30, 2018 were 500 units.

  1. Calculate the number of units sold during July 2018
  2. Compute the Cost of goods sold in July using the following inventory costing methods:
    1. First in, first out (FIFO) method
    2. Last in, first out (LIFO) method
    3. Average Cost method.
  3. Compute the cost of the Ending Inventory of July, 2018 using the Average Cost method

Solutions

Expert Solution

FIFO:

LIFO:

Average Cost:

ekkarill92 answered 2 years ago
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