Assume that Java Coffee Shop completed the following periodi

Assume that Java Coffee Shop completed the following periodic inventory transactions for a line of merchandise inventory: (Click the icon to view the transactions.) 1. Compute ending merchandise inventory, cost of gcods sold, and gross profit using the FIFO inventory costing method. 2. Compute ending merchandise inventory, cost of goods sold, and gross profit using the LIFO inventory costing method. 3. Compute ending merchandise inventory, cost of goods sold, and gross profit using the weighted-average inventory costing method. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) Requirements 1., 2., and 3. Compute ending merchandise inventory, cost of goods sold, and gross profit using the (1) FIFO inventory costing method, (2) LIFO inventory costing method, and (3) weighted-average inventory costing method (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) Begin by determining ending merchandise inventory and cost of goods sold under each of the three methads. More Info Requirement 1 FIFO Jun 12 Purchase 20 Sale 24 Purchase 29 Sale Beginning merchandise inventory 17 unitsS 24 each 3 unitsS 28 each 8 unitsS 33 each 11 units S 31 each 18 units S 33 each Plus Less: Cost of goods sold Print Done

Solution

Answer. Cost of Goods Available for Sale Date Explanation Units Unit Cost Total Cost Jun-1 Op. Inventory                   17              24.00                408 Jun-12 Purchases                      3              28.00                  84 Jun-24 Purchases                   11              31.00                341 Total                   31                833 Sales: Date Explanation Units Unit Cost Total Cost Jun-20                      8              33.00                264 Jun-29                   18              33.00                594 Total                   26                858 Ending Inventory (In Units) = 31 Units - 26 Units = 5 Units Answer 1. FIFO Method Value of Ending Inventory Date Units Unit Cost Total Cost Jun-24                           5             31.00                  155 Total                           5                  155 Cost of Goods Sold: Beginning Inventory                  408 Add: Purchases                  425 Cost of Goods Available for Sale                  833 Less: Ending Inventory                  155 Cost of Goods Sold                  678 Calculation of Gross Profit Sales                  858 Less: Cost of Goods Sold                  678 Gross Profit                  180 Answer 2. LIFO Method Value of Ending Inventory Date Units Unit Cost Total Cost Jun-1                           5             24.00                  120 Total                           5                  120 Cost of Goods Sold: Beginning Inventory                  408 Add: Purchases                  425 Cost of Goods Available for Sale                  833 Less: Ending Inventory                  120 Cost of Goods Sold                  713 Calculation of Gross Profit Sales                  858 Less: Cost of Goods Sold                  713 Gross Profit                  145 Answer 3. Average Cost Per Unit = $833 (Cost of goods available for sale) / 31 Units ( Units Available for Sale) Average Cost Per Unit = $26.87 per Unit (Approx.) Value of Ending Inventory = 5 Units X $26.87 per unit Value of Ending Inventory = $134.35 or say $134 (Approx.) Cost of Goods Sold: Beginning Inventory                  408 Add: Purchases                  425 Cost of Goods Available for Sale                  833 Less: Ending Inventory                  134 Cost of Goods Sold                  699 Calculation of Gross Profit Sales                  858 Less: Cost of Goods Sold                  699 Gross Profit                  159