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Calculate Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-3]
| Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki’s records show the following for the month of January. Sales totaled 240 units. |
| Date | Units | Unit Cost | Total Cost | |||||||
| Beginning Inventory | January 1 | 120 | $ | 80 | $ | 9,600 | ||||
| Purchase | January 15 | 380 | 90 | 34,200 | ||||||
| Purchase | January 24 | 200 | 110 | 22,000 | ||||||
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Question & Answer: Calculate Cost of Ending Inventory and Cost of Goods Sold under Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-…..
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| Date | Units | Units cost | Total | |
| Beginning Inventory | January 1 | 120 | 80 | 9,600 |
| Purchase | January 15 | 380 | 90 | 34,200 |
| Purchase | January 24 | 200 | 110 | 22,000 |
| Total | 700 | 65800 | ||
| Average cost = 65800/700= | 94 | |||
| FIFO: | ||||
| Ending inventory = (260*90)+(200*110)= | 45400 | |||
| Cost of goods sold = 65800-45400= | 20400 | |||
| LIFO: | ||||
| Ending inventory = (120*80)+(340*90)= | 40200 | |||
| Cost of goods sold = 65800-40200= | 25600 | |||
| Weighted average: | ||||
| Ending inventory = 460*94= | 43240 | |||
| Cost of goods sold = 65800-42340= | 23460 | |||
