Question

Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 50 units @ $114 Mar. 10 Purchase 50 units @ $122 Aug. 30 Purchase 30 units @ $128 Dec. 12 Purchase 70 units @ $130 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

Answer 1

FIFO
Date	Particulars	Units	Cost	Amount	COGS
Jan -01	Beginning Inventory	50.00	114.00	5,700.00
Mar -10	Purchase	50.00	122.00	6,100.00
Aug -30	Purchase	30.00	128.00	3,840.00
Dec -12	Purchase	70.00	130.00	9,100.00
	Total available for sale	200.00		24,740.00
	COGS	120.00		14,360.00	50*114+50*122+20*128
	Ending Inventory	80.00		10,380.00	10*128 + 70*130
COGS	14,360.00
Ending Inventory	10,380.00
LIFO
Date	Particulars	Units	Cost	Amount	COGS
Jan -01	Beginning Inventory	50.00	114.00	5,700.00
Mar -10	Purchase	50.00	122.00	6,100.00
Aug -30	Purchase	30.00	128.00	3,840.00
Dec -12	Purchase	70.00	130.00	9,100.00
	Total available for sale	200.00		24,740.00
	COGS	120.00		15,380.00	70*130 + 30*128 + 20*122
	Ending Inventory	80.00		9,360.00	30*122 + 50*114
COGS	15,380.00
Ending Inventory	9,360.00
Weighted Average
Date	Particulars	Units	Cost	Amount	COGS
Jan -01	Beginning Inventory	50.00	114.00	5,700.00
Mar -10	Purchase	50.00	122.00	6,100.00
Aug -30	Purchase	30.00	128.00	3,840.00
Dec -12	Purchase	70.00	130.00	9,100.00
	Total available for sale	200.00	123.70	24,740.00
	COGS	120.00	123.70	14,844.00	120*123.70
	Ending Inventory	80.00	123.70	9,896.00	80*123.70
COGS	14,844.00
Ending Inventory	9,896.00