Question

You have the following information for Sheridan Company for the month ended October 31, 2017. Sheridan Company uses a periodic method for inventory.

Date		Description		Units		Unit Cost or Selling Price
Oct. 1		Beginning inventory		59		$26
Oct. 9		Purchase		113		28
Oct. 11		Sale		103		35
Oct. 17		Purchase		103		29
Oct. 22		Sale		56		40
Oct. 25		Purchase		75		31
Oct. 29		Sale		102		40

Calculate the weighted-average cost. (Round answer to 3 decimal places, e.g. 5.125.)

Weighted-average cost per unit

$enter the weighted-average cost per unit in dollars rounded to 3 decimal places

Calculate ending inventory, cost of goods sold, gross profit under each of the following methods.

(1) LIFO.
(2) FIFO.
(3) Average-cost.

(Round answers to 0 decimal place, e.g. 125.)

		LIFO		FIFO		AVERAGE-COST
The ending inventory		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
The cost of goods sold		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Gross profit		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount

Answer 1

Calculation of units in Ending inventory

Date	Purchase	Sale	Balance
Oct 1	59 units		59 units
Oct 9	113		172
Oct 11		103	69
Oct 17	103		172
Oct 22		56	116
Oct 25	75		191
Oct 29		102	89 units

Units in Ending inventory =89 units

Calculation of goods available for sale

Beginning inventory (59×$26)	$1,534
Purchases:
113×$28	3,164
103×$29	2,987
75×$31	2,325
Cost of goods available for sale	$10,010

FIFO periodic

Calculation of Ending inventory

Date	purchase	Sale	Total cost
Oct 25	75	$31	$2,325
Oct 17	14	$29	$406
			$2,731

Cost of goods available for sale =$10,010

(-) Ending inventory =($2,731)

Cost of goods sold=$7,279

Sale =$9,925

(-) COGS =($7,279)

Gross profit=$2,646

* Sale = 103×$25 + 56×$40 + 102×$40

LIFO periodic

Calculation of Ending inventory

Date	purchase	sale	Total cost
Oct 1	59	$26	$1,534
Oct 9	30	$28	$840
			$2,374

Cost of goods available for sale =$10,010

(-) Ending inventory =($2,374)

Cost of goods sold =$7,636

Sales =$9,925

(-) COGS=($7,636)

Gross profit=$2,289

Average cost method

Weighted average Cost per unit =$10,010/350 =$28.6

Ending inventory =89×$28.6 =$2,545

Cost of goods available for sale =$10,010

(-) ending inventory=($2,545)

Cost of goods sold=$7,465

Sales =$9,925

(-) COGS=($7,465)

Gross profit =$2,460

	LIFO	FIFO	Average cost
Ending inventory	$2,374	$2,731	$2,545
Cost of goods sold	$7,636	$7,279	$7,465
Gross profit	$2,289	$2,646	$2,460

Weighted average cost per unit =$28.6

_____×_____

All the best