core0 of 22 pts 30133 complete P6A32A similar to Right Now E

core:0 of 22 pts 3013(3 complete) P6A-32A (similar to) Right Now Electronic Center began December with 65 units of merchandise inventory that cost $82 each During December, the store made the following purchases (Click the icon to view the purchases ) Right Now uses the periodic inventory system, and the physic al count at December 31 indicates that 80 unds of merchandise inventory are on hand Read the requirements Requirement 1. Determine the ending merchandise inventory and cost of goods sold amounts for the December financial statements using the FIFO, LIFO, and weighted-average inventory costing methods FIFO 74106.680 Ending inventory Cost of goods sold 7,040 6,600 6.230 6,960 Requirement 2. Sales revenue for December totaled $21,000 Compute Right Now\'s gross profit for December using each method 1 Data Table FIFO Cost LIFO Cost Weighted-average Gross profit Dec. 3 25 unts e s 90 each 12 30 unts@ $ 90 each 18 35 unts@S%each Print Done Enter any number in the ear neds and then caCK Check Answer Clear All remaining

Solution

Requirement 1:

FIFO method-

Date

Units (a)

Price (b)

Cost (c = a*b)

Units Sold (d)

Cost of Goods Sold (e = d*b)

Closing Units (f = a - c)

Closing Inventory (g = f*b)

Dec 1

65

82

5330

65

5330

0

0

Dec 3

25

90

2250

10

900

15

1350

Dec 12

30

90

2700

0

0

30

2700

Dec 18

35

96

3360

0

0

35

3360

Total

155

13640

6230

7410

LIFO Method-

Date

Units (a)

Price (b)

Cost (c = a*b)

Units Sold (d)

Cost of Goods Sold (e = d*b)

Closing Units (f = a - c)

Closing Inventory (g = f*b)

Dec 1

65

82

5330

0

0

65

5330

Dec 3

25

90

2250

10

900

15

1350

Dec 12

30

90

2700

30

2700

0

0

Dec 18

35

96

3360

35

3360

0

0

Total

155

13640

6960

6680

Weighted Average method -

Date

Units (a)

Price (b)

Cost (c = a*b)

Dec 1

65

82

5330

Dec 3

25

90

2250

Dec 12

30

90

2700

Dec 18

35

96

3360

Total

155

13640

Weighted average price = 13640 / 155 = $88 per unit

Ending inventory = No. of units * Weighted average price = 80*88 = $7,040

Number of units sold = Total units - Ending inventory units = 155 - 80 = 75

Cost of goods sold = No. of units * Weighted average price = 75*88 = $6,600

Requirement 2:

FIFO

LIFO

Weighted Average

Sales (a)

21000

21000

21000

Cost of Goods sold (b)

6230

6960

6600

Gross Profit (a - b)

14770

14040

14400

Date	Units (a)	Price (b)	Cost (c = a*b)	Units Sold (d)	Cost of Goods Sold (e = d*b)	Closing Units (f = a - c)	Closing Inventory (g = f*b)
Dec 1	65	82	5330	65	5330	0	0
Dec 3	25	90	2250	10	900	15	1350
Dec 12	30	90	2700	0	0	30	2700
Dec 18	35	96	3360	0	0	35	3360
Total	155		13640		6230		7410