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		2,500		$	50
July 5	Sold		1,500
July 13	Purchased		6,500			54
July 17	Sold		3,500
July 25	Purchased		8,500			56
July 27	Sold		5,500

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

a. FIFO (Periodic)
	Units	Cost per Unit	Total
Beginning Inventory	2500	$                  50	$   125,000
Purchases
Jul-13	6500	$                  54	$   351,000
Jul-25	8500	$                  56	$   476,000
Total Purchases	15000		$   827,000
Goods Availbale for Sale	17500		$   952,000
Cost of Goods Sold
Jul-05
Units from Beginning Inventory	1500	$                  50	$     75,000
Jul-17
Units from Beginning Inventory	1000	$                  50	$     50,000
Units from Jul 13 Inventory	2500	$                  54	$   135,000
Jul-27
Units from Jul 13 Inventory	4000	$                  54	$   216,000
Units from Jul 25 Inventory	1500	$                  56	$     84,000
Total Cost of Goods Sold	10500		$   560,000
Ending Inventory
Units from Jul 25 Inventory	7000	$                  56	$   392,000
Total Ending Inventory	7000		$   392,000
b. LIFO (Periodic)
	Units	Cost per Unit	Total
Beginning Inventory	2500	$                  50	$   125,000
Purchases
Jul-13	6500	$                  54	$   351,000
Jul-25	8500	$                  56	$   476,000
Total Purchases	15000		$   827,000
Goods Availbale for Sale	17500		$   952,000
Cost of Goods Sold
Jul-05
Units from Jul 25 Inventory	1500	$                  56	$     84,000
Jul-17
Units from Jul 25 Inventory	3500	$                  56	$   196,000
Jul-27
Units from Jul 25 Inventory	3500	$                  56	$   196,000
Units from Jul 13 Inventory	2000	$                  54	$   108,000
Total Cost of Goods Sold	10500		$   584,000
Ending Inventory
Units from Jul 13 Inventory	4500	$                  54	$   243,000
Units from Beginning Inventory	2500	$                  50	$   125,000
Total Ending Inventory	7000		$   368,000
c. Wighted Average Cost (Periodic)
	Units	Cost per Unit	Total
Beginning Inventory	2500	$            50.00	$   125,000
Purchase on Jul-13	6500	$            54.00	$   351,000
Purchase on Jul-25	8500	$            56.00	$   476,000
Average Cost	17500	$            54.40	$   952,000
Sale on Jul-05	1,500	$            54.40	$     81,600
Sale on Jul-17	3,500	$            54.40	$   190,400
Sale on Jul-27	5,500	$            54.40	$   299,200
Balance	7,000	$            54.40	$   380,800
Total Purchases	15,000		$   827,000
Goods Availbale for Sale	17,500		$   952,000
Cost of Goods Sold	10,500		$   571,200
Ending Inventory	7,000	$            54.40	$   380,800