Question

Consider the following information for Maynor Company, which uses a periodic inventory system: Transaction Units Unit Cost Total Cost January 1 Beginning Inventory 21 $ 71 $ 1,491 March 28 Purchase 31 77 2,387 August 22 Purchase 42 81 3,402 October 14 Purchase 47 87 4,089 Goods Available for Sale 141 $ 11,369 The company sold 47 units on May 1 and 42 units on October 28.
Required:

Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods.

(Round the per unit cost to two decimal places and then round your answer to the nearest whole dollar.)

a. FIFO:

b. LIFO:

c. Weighted Average

Answer 1

Answer:

Weighted average

COGS: 7176.18

Enbding Invnetory:   4192.82

LIFO

cogs  7,491

ending inventory  3878

FIFO

COGS: 6875

Ending Inventory: 4494

Explanation:

event units price subtotal

Beginning 21 71 1491

Purchase 31 77 2387

Purchase 42 81 3402

Purchase 47 87 4089

available 141  11369

Average price: 11,369 / 141 =    80.6312

COGS: (47 + 42) x 80.6312 = 7176.1773

Enbding Invnetory:

(141 - 47 - 42) x 80.6312 =4192.822695

LIFO

we sale the latest units thus, we compute for sold October 14 and August 22

42 x 81 + 47 x 87 = 7,491

Then, Ending Inventory:

good available - COGS = ending inventory

11,369 - 7,491 = 3878

FIFO we sale the first units so we take from the beginning unti l achieve the 89 units sold (42 + 47)

21 from  beginning at 71

31 from  March at 77

37 from  August at 81

Total COGS: 6875

Ending Inventory

good available - COGS = ending inventory

11,369 - 6875= 4494