ter Homework Question 7 of 7 value 1432 points Oahu Klki tr

ter / Homework Question 7 (of 7) value 14.32 points Oahu Klki 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 Purchase 9.600 34,200 January 15 380 90 Purchase January 24 200 110 22,000 late the number and cost of goods available for sale. Number of Goods Available for Sale Cost of Goods Available for Sale units 2. Calculate the number of units in ending inventory Iniventory units 0 Type here to search

Solution

1) Number of goods available for sale = 120+380+200 = 700 Units

Cost of goods available for sale = 9600+34200+22000 = $65800

2) Ending inventory unit = 700-240 = 460 Units

3) Calculate following :

	Cost of ending inventory	Cost of goods sold
FIFO	(200*110+260*90) = 45400	65800-45400 = 20400
LIFO	(120*80+340*90) = 40200	65800-40200 = 25600
Weighted average	(65800/700*460) = 43240	65800-43240 = 22560