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Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies...

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 $ 50
July 5 Sold 1,000
July 13 Purchased 6,000 54
July 17 Sold 3,000
July 25 Purchased 8,000 56
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.)

Solutions

Expert Solution

Purchases
Date Quantity Units cost Total cost
July. 1 2,000 $ 50 $ 100,000
July. 13 6,000 $ 54 $ 324,000
July. 25 8,000 $ 56 $ 448,000
Cost of goods available for sale $ 872,000
(a) FIFO (b) LIFO (c) Weighted average
Ending inventory $ 392,000 $ 370,000 381,500
Cost of goods sold $ 480,000 $ 502,000 490,500

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ekkarill92 answered 1 year ago
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