Question

Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a periodic inventory system. The following are the transactions for the month of July.

		Units			Unit Cost
July 1	Beginning Inventory		2,000		$	40
July 5	Sold		1,000
July 13	Purchased		6,000			42
July 17	Sold		3,000
July 25	Purchased		8,000			44
July 27	Sold		5,000

Calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircard uses (a) FIFO, (b) LIFO, or (c) weighted average cost. (Round "Cost per Unit" to 2 decimal places.)

Answer 1

Methods	Amount of Cost Goods Available for Sale	Ending Inventory	Cost of Goods Sold
FIFO	$        684,000	$                308,000	$                   376,000
LIFO	$        684,000	$                290,000	$                   394,000
Weighted average cost	$        684,000	$                299,250	$                   384,750

--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	2000	$                40.00	$                      80,000.00	2000	$               40.00	$               80,000.00	0	$                 40.00	$                         -
Purchases:
13-Jul	6000	$                42.00	$                    252,000.00	6000	$               42.00	$            252,000.00	0	$                 42.00	$                         -
25-Jul	8000	$                44.00	$                    352,000.00	1000	$               44.00	$               44,000.00	7000	$                 44.00	$        308,000.00
TOTAL	16000		$                    684,000.00	9000		$            376,000.00	7000		$        308,000.00
LIFO	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	2000	$                40.00	$                      80,000.00	0	$               40.00	$                              -	2000	$                 40.00	$          80,000.00
Purchases:
13-Jul	6000	$                42.00	$                    252,000.00	1000	$               42.00	$               42,000.00	5000	$                 42.00	$        210,000.00
25-Jul	8000	$                44.00	$                    352,000.00	8000	$               44.00	$            352,000.00	0	$                 44.00	$                         -
TOTAL	16000		$                    684,000.00	9000		$            394,000.00	7000		$        290,000.00
Average Method	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	2000	$                40.00	$                      80,000.00
Purchases:	0	$                       -	$                                     -
13-Jul	6000	$                42.00	$                    252,000.00
25-Jul	8000	$                44.00	$                    352,000.00
TOTAL	16000	$              42.750	$                    684,000.00	9000	$          42.7500	$            384,750.00	7000	$            42.7500	$        299,250.00