Question

Periodic Inventory System and Inventory Costing Methods Portia's Parts Shop recorded the following purchases and sales during the past year: Jan. 1 Beginning inventory 125 cases @ $23 $ 2,875 Feb. 25 Purchase 100 cases @ $26 2,600 June 15 Purchase 200 cases @ $28 5,600 Oct. 15 Purchase 150 cases @ $28 4,200 Dec. 15 Purchase 100 cases @ $30 3,000 Goods available for sale 675 $18,275 Total sales 500 cases Dec. 31 Ending inventory 175 cases Assume for the specific identification method that the company sold all of the June 15 purchase and 100 cases each from the January 1 beginning inventory, the October 15 purchase, and the December 15 purchase. Determine the costs that should be assigned to ending inventory and cost of goods sold according to the periodic inventory method under each of the assumptions that follow. Costs are assigned by the specific identification method. Cost of goods sold: $ Ending inventory: $ Costs are assigned by the average-cost method. In your calculations round average unit cost to the nearest dollar. Cost of goods sold: $ Ending inventory: $ Costs are assigned by the FIFO method. Cost of goods sold: $ Ending inventory: $ Costs are assigned by the LIFO method. Cost of goods sold: $ Ending inventory: $

Answer 1