Question

Jimmie’s Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June. Jimmie’s Fishing Hole uses a periodic inventory system.

Date			Transactions	Units	Unit Cost			Total Cost
June	1		Beginning inventory	16	$	350		$	5,633
June	7		Sale	11
June	12		Purchase	10		340			3,400
June	15		Sale	12
June	24		Purchase	10		330			3,300
June	27		Sale	8
June	29		Purchase	9		320			2,880
								$	15,180

a. Using FIFO, Calculate ending inventory and cost of goods sold at June 30.

Ending Inventory:

Cost of goods sold:

b. Using LIFO, calculate ending inventory and cost of goods sold at June 30.

Ending inventory:

Cost of goods sold:

c. Using weighted-average cost, calculate ending inventory and cost of goods sold at June 30. (Round your intermediate and final answers to 2 decimal places.)

Ending inventory:

Cost of goods sold:

Answer 1

	FIFO	LIFO	Weighted Average
Ending Inventory	$          4,530	$                 4,900	$        4,723
Cost of goods sold	$        10,650	$              10,280	$     10,457
Workings:
	Cost of goods available for sale			Cost of goods sold - Periodic FIFO			Ending Inventory
FIFO	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory      (A) - (B)	Cost per unit	Ending Inventory
Beginning Inventory	16	$                    350	$        5,600	16	$             350	$       5,600	-	$         350	$                -
Purchases:
Jun-12	10	$                    340	$        3,400	10	$             340	$       3,400	-	$         340	$                -
Jun-24	10	$                    330	$        3,300	5	$             330	$       1,650	5	$         330	$         1,650
Jun-29	9	$                    320	$        2,880	-	$             320	$              -	9	$         320	$         2,880
	45		$     15,180	31		$     10,650	14		$         4,530
	Cost of goods available for sale			Cost of goods sold - Periodic FIFO			Ending Inventory
LIFO	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory      (A) - (B)	Cost per unit	Ending Inventory
Beginning Inventory	16	$                    350	$        5,600	2	$             350	$           700	14	$         350	$         4,900
Purchases:
Jun-12	10	$                    340	$        3,400	10	$             340	$       3,400	-	$         340	$                -
Jun-24	10	$                    330	$        3,300	10	$             330	$       3,300	-	$         330	$                -
Jun-29	9	$                    320	$        2,880	9	$             320	$       2,880	-	$         320	$                -
	45		$     15,180	31		$     10,280	14		$         4,900
	Cost of goods available for sale			Cost of goods sold - Periodic FIFO			Ending Inventory
Weighted Average	# of units    (A)	Cost per unit	Cost of goods available for sale	# of units sold               (B)	Cost per unit	Cost of goods sold	# of units in ending inventory      (A) - (B)	Cost per unit	Ending Inventory
Beginning Inventory	16	$                    350	$        5,600
Purchases:
Jun-12	10	$                    340	$        3,400
Jun-24	10	$                    330	$        3,300
Jun-29	9	$                    320	$        2,880
	45		$     15,180	31	$       337.33	$     10,457	14	$   337.33	$         4,723
*Average Cost	=	Cost of goods available for sale / No. Of units
	=	$15180 / 45 units
	=	$                                                                                                                                                                                 337.33