Answer:
Carstow Inc.
1. Sales revenue = H. $23,520
2. Total cost of goods available for sale during the period = G. $12,320
3. Cost of goods sold under FIFO = D. $7,900
4. Cost of goods sold under LIFO = F. $9,020
5. Cost of ending inventory under LIFO = A. $3,300
6. Cost of goods sold under weighted average = E. $8,484
Explanation:
a) Data and Calculations:
Date Description Units Unit Cost Total
May 1 Beginning inventory 250 $8 $2,000
May 14 Purchase 800 $10 8,000
May 20 Purchase 60 $13 780
May 24 Purchase 110 $14 1,540
May 28 Total units/costs 1,220 $12,320
May 28 Sales 840 $28
May 28 Ending inventory 380
Sales revenue = $23,520 (840 * $28)
FIFO:
Cost of goods sold = $7,900 (250 * $8 + 590 * $10)
Ending inventory = $4,420 ($12,320 - $7,900)
LIFO:
Ending inventory = $3,300 ($250 * $8 + 130 * $10)
Cost of goods sold = $9,020 (12,320 - $3,300)
Weighted average costs:
Cost of goods available for sale = $12,320
Total units available for sale = 1,220
Unit cost of goods = $10.10 ($12,320/1,220)
Cost of goods sold = $8,484 (840 * $10.10)
