Question

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki’s records show the following for the month of January. Sales totaled 300 units.

	Date	Units			Unit Cost			Total Cost
Beginning Inventory	January 1		140		$	80		$	11,200
Purchase	January 15		310			90			27,900
Purchase	January 24		200			110			22,000

1. Calculate the number and cost of goods available for sale.
2. Calculate the number of units in ending inventory.
3. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.

Answer 1

				total
		units	per unit	Ammount
1)	1-Jan	140	80	11200
	15-Jan	310	90	27900
	24-Jan	200	110	22000
	total	650		61100
	total number of units available 650
	total cost of goods available for sale $61,100
2)	number of units in ending inventory
	total available - sold
	650 units - 300 units
	350 units	answer
3)	FIFO
	ending inventory
	15-Jan	150	90	13500
	24-Jan	200	110	22000
	total	350		35500	answer
	cost of goods sold
	1-Jan	140	80	11200
	15-Jan	160	90	14400
	total	300		25600	answer
	LIFO
	ending inventory
	1-Jan	140	80	11200
	15-Jan	210	90	18900
	total	350		30100	answer
	cost of goods sold
	15-Jan	100	90	9000
	24-Jan	200	110	22000
	total	300		31000	anwer
	Weighted average cost
	ending iventory
	61100/650*300=			28200	answer
	cost of goods sold
	61100/650*350=			32900	answer