Question

Inventory Costing Methods—Periodic Method The following information is for the Bloom Company; the company sells just one product: Units Unit Cost Beginning Inventory: Jan. 1 200 $10 Purchases: Feb. 11 500 14 May 18 400 16 Oct. 23 100 18 Sales: March 1 400 July 1 380 Calculate the value of ending inventory and cost of goods sold using the periodic method and (a) first-in, first-out, (b) last-in, first-out, and (c) weighted-average cost method. Do not round until your final answers. Round your final answers to the nearest dollar. A. First-in, First-out: Ending Inventory $ Cost of goods sold $ B. Last-in, first-out: Ending Inventory $ Cost of goods sold $ C. Weighted Average Ending Inventory $ Cost of goods sold $

Answer 1

	Unit	Unit Cost	Total cost
Jan 1	200	10	2000
Feb 11	500	14	7000
May 18	400	16	6400
Oct 23	100	18	1800
Total	1200		17200

Calculate cost of ending inventory and cost of goods sold :

FIFO :

Ending inventory = (100*18+320*16) = $6920

Cost of goods sold = 17200-6920 = 10280

LIFO :

Ending inventory = (200*10+220*14) = 5080

Cost of goods sold = 17200-5080 = 12120

Weighted average:

Ending inventory = 17200/1200*420 = 6020

Cost of goods sold = 17200-6020 = 11180