Question

Consider the following information for Maynor Company, which uses a periodic inventory system: Transaction Units Unit Cost Total Cost January 1 Beginning Inventory 21 $ 71 $ 1,491 March 28 Purchase 31 77 2,387 August 22 Purchase 42 81 3,402 October 14 Purchase 47 87 4,089 Goods Available for Sale 141 $ 11,369 The company sold 47 units on May 1 and 42 units on October 28. Required: Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods. (Round the per unit cost to two decimal places and then round your answer to the nearest whole dollar.)

a. FIFO:

b. LIFO:

c. Weighted Average

Answer 1

CALCULATION OF STOCK UNDER FIFO METHOD

date		begining and purchase			sales			closing
	units	unit rate	total	units	unit rate	total	units	units rate	total
1 jan	21	71	1491	-	-	-	21
28 MAR	31	77	2387	-	-	-	21	71	1491
							31	77	2387
1 ,MAY	-	-	-	21	71	1491
				26	77	2002	5	77	385
22 AUG	42	81	3402	-	-	-	5	77	385
							42	81	3402
14 OCT	47	87	4089	-	-	-	5	77	385
							42	81	3402
							47	87	4089
28 OCT	-	-	-	5	77	385
				37	81	2997	5	81	405
							47	87	4089
TOTAL	141		11369	89		6875	52		4494

CALCULATION OF STOCK UNDER LIFO METHOD

DATE		BEGINING AND PURCHASE			SALES			CLOSING
	UNITS	UNIT RATE	TOTAL	UNITS	UNIT RATE	TOTAL	UNITS	UNIT RATE	TOTAL
1 JAN	21	71	1491	-	-	-	21	71	1491
28 mar	31	77	2387	-	-	-	21	71	1491
							31	77	2387
1 may	-	-	-	31	77	2387
				16	71	1136	5	71	355
22 aug	42	81	3402	-	-	-	5	71	355
							42	81	3402
14 oct	47	87	4089	-	-	-	5	71	355
							42	81	3402
							47	87	4089
28 oct	-	-	-	42	87	3654	5	71	355
							42	81	3402
							5	87	435
total	141		11369	89		7177	52		4192

CALCULATION OF STOCK UNDER WEIGHTED AVERAGE METHOD

DATE		BEGINING AND PURCHASE			SALES			CLOSING
	.units	unit rate	total	units	unit rate	total	units	unit rate	total
1 JAN	21	71	1491	-	-	-	21	71	1491
28 MAR	31	77	2387	-	-	-	21	71	1491
							31	77	2387
							52	74.58	3878
1 MAY	-	-	-	47	74.58	3505	5	74.58	373
22 AUG	42	81	3402	-	-	-	5	74.58	373
							42	81	3402
							47	80.30	3775
14 OCT	47	87	4089	-	-	-	47	80.30	3775
							47	87	4089
							84	83.66	7864
28 OCT	-	--	-	42	83.66	3513.72	52	83.66	4350.28
TOTAL	141		11369	89		7018.72	52		4350.28