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Inventory Costing Methods-Periodic Method Archer Company is a retailer that uses the periodic inventory system. August...

Inventory Costing Methods-Periodic Method Archer Company is a retailer that uses the periodic inventory system. August 1 Beginning inventory 190 units of Product A @ $1,600 total cost 5 Purchased 210 units of Product A @ $2,116 total cost 8 Purchased 310 units of Product A @ $4,416 total cost 11 Sold 260 units of Product A Calculate the August cost of goods sold and the ending inventory at August 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Do not round until your final answers. Round your final answers to the nearest dollar.

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Expert Solution

a) FIFO
Date Particulars Units Cost per Unit Total Cost
Aug 1 Beginning Inventory 190 8 1,600
Aug 5 Purchase 210 10.07619 2,116
Aug 8 Purchase 310 14 4,416
Cost of Goods Available for Sale 710 8,132
Less: Ending Inventory ( 310*14+140*10.07619) 450 5,751
Cost of Goods Sold 260 2,381
b) LIFO (Periodic)
Date Particulars Units Cost per Unit Total Cost
Aug 1 Beginning Inventory 1 190 8 1,600
Aug 5 Purchase 5 210 10.07619 2,116
Aug 8 Purchase 8 310 14 4,416
Cost of Goods Available for Sale 710 8,132
Less: Ending Inventory ( 190*8+210*10.07619+50*14) 450 4,336
Cost of Goods Sold 260 3,796
c) Average Cost method
Date Particulars Units Cost per Unit Total Cost
Aug 1 Beginning Inventory 1 190 8 1,600
Aug 5 Purchase 5 210 10.07619 2,116
Aug 8 Purchase 8 310 14 4,416
Cost of Goods Available for Sale 710 8,132
Less: Ending Inventory ( 450*11) 450 11 4,950
Cost of Goods Sold 260 3,182

ekkarill92 answered 1 year ago
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