Question
In: Accounting
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
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 320 units. Date Units Unit Cost Total Cost Beginning Inventory January 1 260 $ 85 $ 22,100 Purchase January 15 420 95 39,900 Purchase January 24 220 115 25,300 Required: Calculate the number and cost of goods available for sale. Calculate the number of units in ending inventory. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
Solutions
Expert Solution
| Units | Unit cost | Total | |
| January 1 | 260 | 85 | 22100 |
| January 15 | 420 | 95 | 39900 |
| January 24 | 220 | 115 | 25300 |
| Total | 900 | 87300 | |
| 1 | |||
| Number of goods available for sale | 900 | ||
| Cost of goods available for sale | 87300 | ||
| 2 | |||
| Number of units in ending inventory | 580 | =900-320 | |
| 3 | |||
| FIFO: | |||
| Cost of ending inventory | 59500 | =(220*115)+(580-220)*95 | |
| Cost of goods sold | 27800 | =87300-59500 | |
| LIFO: | |||
| Cost of ending inventory | 52500 | =(260*85)+(580-260)*95 | |
| Cost of goods sold | 34800 | =87300-52500 | |
| Weighted average cost: | |||
| Average cost | 97 | =87300/900 | |
| Cost of ending inventory | 56260 | =580*97 | |
| Cost of goods sold | 31040 | =87300-56260 | |
ekkarill92 answered 2 years agoRelated Solutions
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
Oahu Kiki tracks the number of units purchased and sold
throughout each accounting period but applies its inventory costing
method perpetually at the time of each sale, as if it uses
perpetual inventory system. Assume Oahu Kiki’s records show the
following for the month of January. The company sold 290 units
between January 16 and 23.
Date Units
Unit Cost
Total Cost
Beginning Inventory
January 1
240
$
70
$
16,800
Purchase
January 15
450
80
36,000
Purchase
January 24...
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
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 250 units.
Date
Units
Unit Cost
Total Cost
Beginning Inventory
January 1
100
$
80
$
8,000
Purchase
January 15
450
90
40,500
Purchase
January 24
200
110
22,000
Required:
Calculate the...
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
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 totalled 240 units.
Date
Units
Unit Cost
Total Cost
Beginning Inventory
January
1
120
$
8
$
960
Purchase
January
15
380
9
3,420
Purchase
January
24
200
11
2,200
1. Calculate the...
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
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
Calculate the number...
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
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 330 units.
Date
Units
Unit Cost
Total Cost
Beginning Inventory
January 1
300
$
90
$
27,000
Purchase
January 15
400
100
40,000
Purchase
January 24
300
120
36,000
Required:
1.
Calculate...
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
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 280 units.
Date
Units
Unit Cost
Total Cost
Beginning Inventory
January 1
120
$
85
$
10,200
Purchase
January 15
380
95
36,100
Purchase
January 24
200
115
23,000
Required:
1.
Calculate...
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
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 310 units.
Date
Units
Unit Cost
Total Cost
Beginning
Inventory
January
1
240
$
80
$
19,200
Purchase
January
15
360
90
32,400
Purchase
January
24
200
110
22,000
Required:
1.
Calculate...
Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies...
Gladstone Company tracks the number of units purchased and sold
throughout each accounting period but applies its inventory costing
method at the time of each sale, as if it uses a perpetual
inventory system. Assume its accounting records provided the
following information at the end of the annual accounting period,
December 31.
Transactions
Units
Unit Cost
Beginning inventory, January 1
1,400
$
50
Transactions during the year:
a.
Purchase, January 30
2,100
62
b.
Sale, March 14
($100 each)
(1,370...
Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies...
Gladstone Company tracks the number of units purchased and sold
throughout each accounting period but applies its inventory costing
method at the end of each period, as if it uses a periodic
inventory system. Assume its accounting records provided the
following information at the end of the annual accounting period,
December 31.
Transactions
Units
Unit Cost
Beginning inventory, January 1
3,400
$
50
Transactions during the year:
a.
Purchase, January 30
4,700
65
b.
Sale, March 14 ($100 each)
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Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies...
Gladstone Company tracks the number of units purchased and sold
throughout each accounting period but applies its inventory costing
method at the end of each period, as if it uses a periodic
inventory system. Assume its accounting records provided the
following information at the end of the annual accounting period,
December 31.
Transactions
Units
Unit Cost
Beginning inventory, January 1
1,600
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Transactions during the year:
a.
Purchase, January 30
2,300
49
b.
Sale, March 14 ($100 each)
(1,250...
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