The accounting records of Swifty Corporation show the following data. Beginning inventory 4,000 units at $6...

The accounting records of Swifty Corporation show the following data.

Beginning inventory	4,000 units at	$6
Purchases	8,500 units at	$8
Sales	10,700 units at	$11

1) Average unit cost.

2) FIFO

3)LIFO

4) Average cost

Solutions

Expert Solution

Cost Goods Available For Sale
= Beginning inventory Value + purchases Cost
= ( 4000 * 6 ) + ( 8500* 8 )
= 24000 + 68000
= $ 92000

no of units Available For Sale
= Beiginning inventory units + total purchased units – purchase returns
= 4000 + 8500 - 0
= 12500

average unit Cost = total cost of goods available for Sale / total units Available for sale
= 92000 / 12500
= $ 7.36

under fifo

no of units Sold = 10700
Ending inventory units = no of units Available for Sale - Sold units
= 12500 - 10700
= 1800 units
Cost of ending inventory ( FIFO )
( we need to Calculate From the Latest purchases As it indicate that first purchased goods are sold )
= ( 1800 * 8 )
= $ 14400

LIFO
( we need to Calculate From the First purchases As it indicate that last purchased goods are sold )
= ( 1800 * 6 )
= $ 10800

Average cost method
average unit Cost = total cost of goods available for Sale / total units Available for sale
= 92000 / 12500
= $ 7.36

Ending inventory = Ending inventory units * 7.36
= 1800 * 7.36

= $ 13248

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

The accounting records of Metlock Electronics show the following data. Beginning inventory 2,700 units at $5...

The accounting records of Metlock Electronics show the following data. Beginning inventory 2,700 units at $5 Purchases 7,000 units at $7 Sales 8,100 units at $10 1a. Determine cost of goods sold during the period under a periodic inventory system using the FIFO method. 1b. Determine cost of goods sold during the period under a periodic inventory system using the LIFO method. 1c. Determine cost of goods sold during the period under a periodic inventory system using the average-cost method.

The accounting records of Blossom Company show the following data. Beginning inventory 5,000 units at $5...

The accounting records of Blossom Company show the following data. Beginning inventory 5,000 units at $5 Purchases 7,500 units at $7 Sales 9,900 units at $10 Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method. (Round answers to 0 decimal places, e.g. 125.)

The accounting records of Blossom Company show the following data. Beginning inventory 5,000 units at $5...

The accounting records of Blossom Company show the following data. Beginning inventory 5,000 units at $5 Purchases 7,500 units at $7 Sales 9,900 units at $10 Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost $enter average unit cost in dollars per unit Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method. (Round answers to 0 decimal places, e.g....

Question 1 The accounting records of Sunland Company show the following data. Beginning inventory 3,190 units...

Question 1 The accounting records of Sunland Company show the following data. Beginning inventory 3,190 units at $6 Purchases 7,450 units at $8 Sales 9,194 units at $11

Do It! Review 6-2 The accounting records of Whispering Winds Corp. show the following data. Beginning...

Do It! Review 6-2 The accounting records of Whispering Winds Corp. show the following data. Beginning inventory 3,010 units at $6 Purchases 8,130 units at $8 Sales 9,090 units at $11 Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO Average-cost Cost of goods sold $enter a dollar amountEntry field with incorrect answer 6. $enter...

Swifty Corporation had a beginning inventory of 120 units of Product RST at a cost of...

Swifty Corporation had a beginning inventory of 120 units of Product RST at a cost of $7 per unit. During the year, purchases were: Feb. 20 630 units at $8 Aug. 12 445 units at $10 May 5 535 units at $9 Dec. 8 120 units at $11 Swifty uses a periodic inventory system. Sales totaled 1,500 units. The cost of goods available for sale 16465 Average Cost 8.9 Determine the ending inventory and the cost of goods sold under...

Tess Company's inventory records show the following data for the month of May: Units Unit Cost...

Tess Company's inventory records show the following data for the month of May: Units Unit Cost Inventory, May 1 200 $2.00 Purchases: May 8 200 3.00 May 15 100 4.00 The company uses a periodic inventory system. A physical inventory on May 30 shows 150 units on hand. Assuming FIFO (First-In-First-Out) inventory costing, calculate the cost of goods sold. a. $1,100 b. $850 c. $700 d. $980

Shellhammer Company's inventory records show the following data for the month of September: Units Unit Cost...

Shellhammer Company's inventory records show the following data for the month of September: Units Unit Cost Inventory, September 1 100 $3.34 Purchases: September 8 450 3.50 September 18 350 3.70 A physical inventory on September 30 shows 200 units on hand. Calculate the value of the ending inventory and cost of goods sold if the company uses weighted average inventory costing and a periodic inventory system. (Round cost per unit to 2 decimal places and ending inventory and cost of...

1. Eneri Company's inventory records show the following data: Units Unit Cost Inventory, January 1 5,000...

1. Eneri Company's inventory records show the following data: Units Unit Cost Inventory, January 1 5,000 $9.20 Purchases: June 18 4,500 8.00 November 8 3,000 7.00 A physical inventory on December 31 shows 2,000 units on hand. Eneri sells the units for $13 each. The company has an effective tax rate of 20%. Eneri uses the periodic inventory method. Under the FIFO method, the December 31 inventory is valued at A. $16,133. B. $14,000. C. $16,480. D. $18,400. 2. Priscilla...

DO IT! 6-2: The accounting records of Old Towne Electronics show the following data. Apply rules...

DO IT! 6-2: The accounting records of Old Towne Electronics show the following data. Apply rules of ownership to determine inventory cost. Beginning inventory: 3,000 units at $5 Purchases: 8,000 units at $7 Sales: 9,400 units at $10 Determine cost of goods sold during the period under a periodic inventory system using (a) the FIFO method, (b) the LIFO method, and (c) the average-cost method. (Round unit cost to nearest tenth of a cent.)

Subjects