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. FIFO LIFO Weighted Average

Answer 1

Answer:  

FIFO LIFO WEIGHTED AVERAGE  

Ending inventory   4494 3878 4193  

Cost of Goods Sold   6875 7491 7176  

Explanation:

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO          

RECIEPTS   COST OF GOODS SOLD   BALANCE  

DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $

balance   21 71 1491 21 71 1491    

Purchasse          

28-Mar 31 77 2387 31 77 2387    

22-Aug 42 81 3402 37 81 2997 5 81 405

14-Oct 47 87 4089    47 87 4089

TOTAL 141  11369 89  6875 52  4494

         

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO          

RECIEPTS   COST OF GOODS SOLD   BALANCE  

DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $

balance   21 71 1491    21 71 1491

Purchasse          

28-Mar 31 77 2387    31 77 2387

22-Aug 42 81 3402 42 81 3402    

14-Oct 47 87 4089 47 87 4089    

TOTAL 141  11369 89  7491 52  3878

         

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE          

RECIEPTS   COST OF GOODS SOLD   BALANCE  

DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $

balance   21 71 1491      

Purchasse          

28-Mar 31 77 2387      

22-Aug 42 81 3402      

14-Oct 47 87 4089      

TOTAL 141 80.63 11369 89 80.63 7176 52 80.63 4193