Question

Flint Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gizmo for the month of March. Flint Company uses the periodic inventory system.

				Purchases						Sales
				Units			Unit Cost			Units			Selling Price/Unit
3/1		Beginning inventory		92			$30
3/3		Purchase		54			$40
3/4		Sales								54				$70
3/10		Purchase		184			$45
3/16		Sales								62				$80
3/19		Sales								84				$80
3/25		Sales								54				$80
3/30		Purchase		38			$50

Using the FIFO assumption, calculate the amount charged to cost of goods sold for March.

Cost of goods sold

$enter cost of goods sold in dollars

  

  

Using the weighted-average method, calculate the amount assigned to the inventory on hand on March 31. (Round intermediate calculation and final answer to 0 decimal places, e.g. 12.)

Ending Inventory

$enter ending inventory in dollars

  

  

Using the LIFO assumption, calculate the amount assigned to the inventory on hand on March 31.

Ending Inventory

$enter ending inventory in dollars

  

Answer 1

Solution

Using the FIFO assumption

Cost of goods sold = $9,780

Using the weighted-average method

Ending Inventory

$ 4,674

Using the LIFO assumption

Ending Inventory

$3,640

Working

	Units	Cost per unit	value
Beginning Balance	92	$                   30.00	$ 2,760
Purchases
	54	$                   40.00	$ 2,160
	184	$                   45.00	$ 8,280
	38	$                   50.00	$ 1,900
Cost of goods available for sale	368		$ 15,100

.

Average Cost of Inventory
Units	(A)	368
Total Cost	(B)	$ 15,100
Average Cost	(C=B/A)	$ 41

.

FIFO
Total Units Available for sale		368
Units Sold		254
Closing Stock in Units		114
Valuation
Ending Inventory	38	@	$             50.00	$ 1,900
	76	@	$             45.00	$ 3,420
Value Of Ending Inventory				$ 5,320
Cost of Goods sold	15100 minus 5320			$ 9,780
LIFO
Total Units Available for sale		368
Units Sold		254
Closing Stock in Units		114
Valuation
Ending Inventory	92	@	$             30.00	$ 2,760
	22	@	$             40.00	$ 880
Value Of Ending Inventory				$              3,640
Cost of Goods sold	15100 minus 3640			$            11,460
Weighted Average method
Total Units Available for sale		368
Units Sold		254
Closing Stock in Units		114
Valuation
Ending Inventory	114	@	$                   41	$              4,674
Value Of Ending Inventory				$              4,674
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$            10,426