Question

Bridgeport Corp. uses a periodic inventory system reports the following for the month of June.

Date		Explanation		Units		Unit Cost		Total Cost
June 1		Inventory		112		$5		$560
12		Purchases		336		6		2016
23		Purchases		190		7		1330
30		Inventory		200

A sale of 388 units occurred on June 15 for a selling price of $8 and a sale of 50 units on June 27 for $9.

Calculate the average cost per unit, using a perpetual inventory system. (Round answers to 3 decimal places, e.g. 5.125.)

June 1		$5
June 12		$5.75
June 15		$5.75
June 23		$
June 27		$

Calculate cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 388 units occurred on June 15 for a selling price of $8 and a sale of 50 units on June 27 for $9. (Round answers to 0 decimal places, e.g. 125.)

		FIFO		LIFO		Moving-Average
The cost of the ending inventory		$		$		$
The cost of goods sold		$		$		$

Answer 1

Solution 1:

Moving Average Cost
Date	Average cost
1-Jun	$5.000
12-Jun	$5.000
15-Jun	$5.750
23-Jun	$5.750
27-Jun	$6.700

Solution 2:

Computation of ending inventory COGS under FIFO - Bridgeport Corp.
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1-Jun	112	$5.00	$560.00	0	$0.00	$0.00	0	$0.00	$0.00	112	$5.00	$560.00
12-Jun	112	$5.00	$560.00	336	$6.00	$2,016.00	0	$0.00	$0.00	112	$5.00	$560.00
										336	$6.00	$2,016.00
15-Jun	112	$5.00	$560.00	0	$0.00	$0.00	112	$5.00	$560.00	60	$6.00	$360.00
	336	$6.00	$2,016.00				276	$6.00	$1,656.00
23-Jun	60	$6.00	$360.00	190	$7.00	$1,330.00	0	$0.00	$0.00	60	$6.00	$360.00
										190	$7.00	$1,330.00
27-Jun	60	$6.00	$360.00	0	$0.00	$0.00	50	$6.00	$300.00	10	$6.00	$60.00
	190	$7.00	$1,330.00							190	$7.00	$1,330.00
Total							438		$2,516.00	200		$1,390.00

Computation of ending inventory COGS under LIFO - Bridgeport Corp.
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1-Jun	112	$5.00	$560.00	0	$0.00	$0.00	0	$0.00	$0.00	112	$5.00	$560.00
12-Jun	112	$5.00	$560.00	336	$6.00	$2,016.00	0	$0.00	$0.00	112	$5.00	$560.00
										336	$6.00	$2,016.00
15-Jun	112	$5.00	$560.00	0	$0.00	$0.00	336	$6.00	$2,016.00	60	$5.00	$300.00
	336	$6.00	$2,016.00				52	$5.00	$260.00
23-Jun	60	$5.00	$300.00	190	$7.00	$1,330.00	0	$0.00	$0.00	60	$5.00	$300.00
										190	$7.00	$1,330.00
27-Jun	60	$5.00	$300.00	0	$0.00	$0.00	50	$7.00	$350.00	60	$5.00	$300.00
	190	$7.00	$1,330.00							140	$7.00	$980.00
Total							438		$2,626.00	200		$1,280.00

Computation of ending inventory COGS under Moving Average Cost - Bridgeport Corp.
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1-Jun	112	$5.00	$560	0	$0.00	$0	0	$0.00	$0	112	$5.00	$560
12-Jun	112	$5.00	$560	336	$6.00	$2,016	0	$0.00	$0	448	$5.75	$2,576
15-Jun	448	$5.75	$2,576	0	$0.00	$0	388	$5.75	$2,231	60	$5.75	$345
23-Jun	60	$5.75	$345	190	$7.00	$1,330	0	$0.00	$0	250	$6.70	$1,675
27-Jun	250	$6.70	$1,675	0	$0.00	$0	50	$6.70	$335	200	$6.70	$1,340
Total							438		$2,566	200		$1,340