Use the following information for questions 47 Heisman Inc u

Use the following information for questions 4-7 Heisman Inc. uses the periodic inventory system. $750.00 1,736.50 1,140.00 $3,626.50 June 1 On hand, 50 units $15.00 each Purchased 115 units $15.10 each Purchased 75 units $15.20 each Total cost of goods available for sale On hand, 90 units 14 30

Solution

5) Cost of goods sold Under LIFO :

Units available for sale = 240 unit

Cost of goods available for sale = 3626.50

Cost of goods sold unit = 240-90 = 150 units

Cost of goods sold under LIFO = (75*15.20+75*15.10) = 2272.50

So answer is c) $2272.50

6) Ending inventory under weighted average cost method :

Ending inventory under weighted average cost method = 3626.50/240*90 = 1359.90

So answer is a) $1359.90

7) Cost of goods sold under Specific identification method = (50*15+70*15.10+15.20*30) = 2263

So answer is a) $2263.00