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16 January, 04:28

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

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Answers (1)
  1. 16 January, 04:57
    0
    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
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