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Inventory Costing Methods

Oppenheimer Inc. reported the following information for the month of May:

Inventory, May 1		65 units @ $26
Purchase:
May 7		45 units @ $28
May 18		67 units @ $29
May 27		48 units @ $31

During May, Oppenheimer sold 141 units. The company uses a periodic inventory system.

Required:

What is the value of ending inventory and cost of goods sold for May under the following assumptions.

Assumption	Cost of Goods Sold	Ending Inventory
1. Of the 141 units sold, 55 cost $26, 31 cost $28, 50 cost $29, and 5 cost $31.	$	$
2. FIFO	$	$
3. LIFO	$	$
4. Weighted average method (Round average unit cost to the nearest cent, and round all other calculations and your final answers to the nearest dollar.)	$	$

Answer 1

1)	Cost of Goods Sold			Balance
	Units (a)	Rate (b)	Amount (a*b)	Units (a)	Rate (b)	Amount (a*b)
Cost of Goods Sold	55	$26	$1,430	10	$26	$260
	31	$28	$868	14	$28	$392
	50	$29	$1,450	17	$29	$493
	5	$31	$155	43	$31	$1,333
Totals	141		$3,903	84		$2,478
Therefore, cost of goods sold is $3,903 with 141 units and cost of ending inventory is $2,478 with 84 units.
2) FIFO:
	Cost of Goods Sold			Balance
	Units (a)	Rate (b)	Amount (a*b)	Units (a)	Rate (b)	Amount (a*b)
Inventory, May 1	65	$26	$1,690	0	0	0
May 7	45	$28	$1,260	0	0	0
May 18 (141 - 65 - 45 = 31)	31	$29	$899	36	$29	$1,044
May 27	0	$0	$0	48	$31	$1,488
Totals	141		$3,849	84		$2,532
Therefore, cost of goods sold is $3,849 with 141 units and cost of ending inventory is $2,532 with 84 units.
3) LIFO:
	Cost of Goods Sold			Balance
	Units (a)	Rate (b)	Amount (a*b)	Units (a)	Rate (b)	Amount (a*b)
May 27	48	$31	$1,488	0	0	0
May 18	67	$29	$1,943	0	0	0
May 7 (141 - 48 - 67 = 26)	26	$28	$728	19	$28	$532
Inventory, May 1	0	$0	$0	65	$26	$1,690
Totals	141		$4,159	84		$2,222
Therefore, cost of goods sold is $4,159 with 141 units and cost of ending inventory is $2,222 with 84 units.
4) Weighted average:
	Units (a)	Rate (b)	Amount (a*b)
Inventory, May 1	65	$26	$1,690
May 7	45	$28	$1,260
May 18	67	$29	$1,943
May 27	48	$31	$1,488
	225		$6,381
Unit rate under weighted average ($6,381/225 units)		$28.36
	Cost of Goods Sold			Balance
	Units (a)	Rate (b)	Amount (a*b)	Units (a)	Rate (b)	Amount (a*b)
	141	$28.4	$3,999	84	$28.4	$2,382
Therefore, cost of goods sold is $3,999 with 141 units and cost of ending inventory is $2,382 with 84 units.