Question
In: Accounting
Assume Oahu Kiki applies its inventory costing method perpetually at the time of each sale. The...
Assume Oahu Kiki applies its inventory costing method
perpetually at the time of each sale. The company sold 240 units
between January 16 and 23.
| Date | Units | Unit Cost | Total Cost | |||||||
| Beginning Inventory | January | 1 | 120 | $ | 8 | $ | 960 | |||
| Purchase | January | 15 | 380 | 9 | 3,420 | |||||
| Purchase | January | 24 | 200 | 11 | 2,200 | |||||
Calculate the cost of ending inventory and the cost of goods
sold using the FIFO method.
Solutions
Expert Solution
- Ending Inventory = $ 4,540
- Cost of Goods available = $ 2040
- Working
|
FIFO |
Cost of Goods available for sale |
Cost of Goods Sold |
Ending Inventory |
||||||
|
Units |
Cost/unit |
COG for sale |
Units sold |
Cost/unit |
COGS |
Units |
Cost/unit |
Ending inventory |
|
|
Beginning Inventory |
120 |
$ 8.00 |
$ 960.00 |
120 |
$ 8.00 |
$ 960.00 |
0 |
$ 8.00 |
$ - |
|
Purchases: |
|||||||||
|
15-Jan |
380 |
$ 9.00 |
$ 3,420.00 |
120 |
$ 9.00 |
$ 1,080.00 |
260 |
$ 9.00 |
$ 2,340.00 |
|
24-Jan |
200 |
$ 11.00 |
$ 2,200.00 |
0 |
$ 11.00 |
$ - |
200 |
$ 11.00 |
$ 2,200.00 |
|
TOTAL |
700 |
$ 6,580.00 |
240 |
$ 2,040.00 |
460 |
$ 4,540.00 |
|||
ekkarill92 answered 2 years agoRelated Solutions
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
Oahu Kiki tracks the number of units purchased and sold
throughout each accounting period but applies its inventory costing
method perpetually at the time of each sale, as if it uses
perpetual inventory system. Assume Oahu Kiki’s records show the
following for the month of January. The company sold 290 units
between January 16 and 23.
Date Units
Unit Cost
Total Cost
Beginning Inventory
January 1
240
$
70
$
16,800
Purchase
January 15
450
80
36,000
Purchase
January 24...
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
Oahu Kiki tracks the number of units purchased and sold
throughout each accounting period but applies its inventory costing
method at the end of each month, as if it uses a periodic inventory
system. Assume Oahu Kiki’s records show the following for the month
of January. Sales totaled 250 units.
Date
Units
Unit Cost
Total Cost
Beginning Inventory
January 1
100
$
80
$
8,000
Purchase
January 15
450
90
40,500
Purchase
January 24
200
110
22,000
Required:
Calculate the...
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
Oahu Kiki tracks the number of units purchased and sold
throughout each accounting period but applies its inventory costing
method at the end of each month as if it uses a periodic inventory
system. Assume Oahu Kiki’s records show the following for the month
of January. Sales totalled 240 units.
Date
Units
Unit Cost
Total Cost
Beginning Inventory
January
1
120
$
8
$
960
Purchase
January
15
380
9
3,420
Purchase
January
24
200
11
2,200
1. Calculate the...
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
Oahu Kiki tracks the number of units purchased and sold
throughout each accounting period but applies its inventory costing
method at the end of each month, as if it uses a periodic inventory
system. Assume Oahu Kiki’s records show the following for the month
of January. Sales totaled 300 units.
Date
Units
Unit Cost
Total Cost
Beginning Inventory
January 1
140
$
80
$
11,200
Purchase
January 15
310
90
27,900
Purchase
January 24
200
110
22,000
Calculate the number...
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
Oahu Kiki tracks the
number of units purchased and sold throughout each accounting
period but applies its inventory costing method at the end of each
month, as if it uses a periodic inventory system. Assume Oahu
Kiki’s records show the following for the month of January. Sales
totaled 330 units.
Date
Units
Unit Cost
Total Cost
Beginning Inventory
January 1
300
$
90
$
27,000
Purchase
January 15
400
100
40,000
Purchase
January 24
300
120
36,000
Required:
1.
Calculate...
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
Oahu Kiki tracks the number of units purchased and sold
throughout each accounting period but applies its inventory costing
method at the end of each month, as if it uses a periodic inventory
system. Assume Oahu Kiki’s records show the following for the month
of January. Sales totaled 280 units.
Date
Units
Unit Cost
Total Cost
Beginning Inventory
January 1
120
$
85
$
10,200
Purchase
January 15
380
95
36,100
Purchase
January 24
200
115
23,000
Required:
1.
Calculate...
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
Oahu Kiki tracks the number of units purchased and sold
throughout each accounting period but applies its inventory costing
method at the end of each month, as if it uses a periodic inventory
system. Assume Oahu Kiki’s records show the following for the month
of January. Sales totaled 320 units. Date Units Unit Cost Total
Cost Beginning Inventory January 1 260 $ 85 $ 22,100 Purchase
January 15 420 95 39,900 Purchase January 24 220 115 25,300
Required: Calculate the...
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...
Oahu Kiki tracks the number of units purchased and sold
throughout each accounting period but applies its inventory costing
method at the end of each month, as if it uses a periodic inventory
system. Assume Oahu Kiki’s records show the following for the month
of January. Sales totaled 310 units.
Date
Units
Unit Cost
Total Cost
Beginning
Inventory
January
1
240
$
80
$
19,200
Purchase
January
15
360
90
32,400
Purchase
January
24
200
110
22,000
Required:
1.
Calculate...
Oahu Kiji tracks the number units purchased and sold throughout each accounting period but applies it’s inventory costing method at the end of each month uses periodic inventory
Oahu Kiji tracks the number units purchased and sold throughout
each accounting period but applies it’s inventory costing method at
the end of each month uses periodic inventory.,assume KIki’s
records show the following for the month of janauarsy. Sales
totaled 310BI January 1 240 units cost $80 total 19200Purchase January 15 360 units cost 90 total 32400 . Purchase
January 14 200 units cost 110 total cost 22000. Sales total
310Number of goods available for said 800 units and cost...
Identify the inventory costing method best described by each of the following separate statements. Assume a...
Identify the inventory costing method best described by each of
the following separate statements. Assume a period of increasing
costs.
1. Mimics the actual flow of inventory for most businesses.
2. Cost of goods sold approximates its current cost.
3. Precisely matches the costs of items with the revenues they
generate.
4. Yields the lowest net income.
5. Has the lowest tax expense because of reporting the lowest
net income.
OPTIONS: WEIGHTED AVERAGE, SPECIFIC IDENTIFICATION, FIFO, OR
LIFO
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