value 1500 points Mojo Industries tracks the number of units

value: 15.00 points Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system Assume its accounting records provided the following information at the end of the accounting period January 31. The inventory\'s selling price is $12 per unit. Unit Cost Total Cost Transactions Inventory, January1 Sale, January 10 Purchase, January 12 Sale, January 17 Purchase, January 26 $4.00 4.50 5.50 Units 190 170) 240 (110) 70 $ 760 1,080 385 Assuming that for Specific identification method (item 1d) the January 10 sale was from the beginning inventory and the January 17 sale was from the January 12 purchase Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January 31 under each of the following inventory costing methods: (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) Amount of Goods Available for Sale Ending Inventory Cost of Goods Sold a. Weighted average cost b. First-in, first-out c. Last-in, first-out d. Specific identification 2-a. Of the four methods, which will result in the highest gross profit? Weighted average cost First-in, first-out Last-in, first-out Specific identification

Solution

Solution 1:

Total unit available = 190+240+70 = 500 units

Total Sale units = 170+110 = 280 units

Ending Inventory units = 500- 280 = 220 units

a:

b:

c:

d:

Solution 2-a:

FIFO method will result in Highest Gross profit of $2,195 since it has lowest cost of goods sold.

Weighted Average cost method -Computation of Goods available for sale, COGS and ending inventory
Particulars	Cost of goods available for sale	Cost of goods sold - Average cost	Ending Inventory - Average cost
Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	190	$4.00	$760
Purchases:
12-Jan	240	$4.50	$1,080
26-Jan	70	$5.50	$385
Total/Average	500	$4.45	$2,225.00	280	$4.45	$1,246.00	220	$4.45	$979.00