Question

In: Accounting

Specific Identification, FIFO, LIFO, and Weighted-Average Swing Company's beginning inventory and purchases during the fiscal year...

Specific Identification, FIFO, LIFO, and Weighted-Average

Swing Company's beginning inventory and purchases during the fiscal year ended September 30, 20-2, were as shown.

Units Unit Price Total Cost
October 1, 20-1 Beginning inventory 410 $20.00    $8,200
October 18 1st purchase 540 20.50    11,070
November 25 2nd purchase 190 21.50    4,085
January 12, 20-2 3rd purchase 300 22.50    6,750
March 17 4th purchase 880 23.50    20,680
June 2 5th purchase 830 24.00    19,920
August 21 6th purchase 200 25.00    5,000
September 27 7th purchase 710 26.00    18,460
4,060 $94,165

Use the following information for the specific identification method.

There are 1,300 units of inventory on hand on September 30, 20-2. Of these 1,300 units:

100 are from October 18, 20-1 1st purchase
200 are from January 12, 20-2 3rd purchase
100 are from March 17 4th purchase
400 are from June 2 5th purchase
200 are from August 21 6th purchase
300 are from September 27 7th purchase

Required:

Calculate the total amount to be assigned to cost of goods sold for the fiscal year ended September 30, 20-2, and ending inventory on September 30, 20-2, under each of the following periodic inventory methods.

Cost of Goods Sold Cost of Ending Inventory
1. FIFO $ $
2. LIFO $ $
3. Weighted-average (round calculations to two decimal places) $ $
4. Specific identification $ $

Solutions

Expert Solution

Swing Company
Periodic Inventory System Cost of goods sold Cost of Ending Inventory
FIFO                         60,955                                       33,210
LIFO                         67,210                                       26,955
Weighted Average                   64,013.65                                 30,151.35
Specific identification                         62,865                                       31,300


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