2 value 166 points M78 Calculating Cost of Goods Available f

2. value 166 points M7-8 Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under Peric In its first month of operations, Literacy for the Iliterate opened a new bookstore and bought merchandise in the following order: (1) 300 units at $7 on January 1. (2) 450 units at 58 on January 8, and (3) 750 units at $9 on January 29 Assuming 900 units are on hand at the end of the mont calculate the cost of goods available for sale, ending inventory, and cost of goods sold under the (a) FIFO (b) LIFO, and (c) weighted average cost flow assumptions Assume a periodic inventory system is used (Round Cost per Unit to 2 decimal places.) FIFO Weighted Cost of Goods Available for Sale $ Ending Inventory Average Cost 12 45012,450 (7,470) 4.980 12,450 Cost of Goods Sold

Solution

FIFO

LIFO

Weighted

Average Cost

Cost of Goods Available for Sale

$ 12,450

$ 12,450

$ 12,450

Ending Inventory

($ 7,950 )

($ 7,950)

($ 7,470)

Cost of Goods Sold

$ 4,500

$ 4,500

$ 4,980

Explanation:

FIFO (Periodic)

Receipts

Cost of Goods Sold

Balance

Description

Qty

Rate

Amount

Qty

Rate

Amount

Qty

Rate

Amount

1 January

Purchases

300

$7

$2,100

8 January

Purchases

450

$8

$3,600

29 January

Purchases

750

$9

$6,750

Sold

300

$7

$2,100

Sold

300

$8

$2,400

150

$8

$1,200

750

$9

$6,750

Ending

1,500

$12,450

600

$ 4,500

900

$ 7,950

LIFO (Periodic)

Receipts

Cost of Goods Sold

Balance

Description

Qty

Rate

Amount

Qty

Rate

Amount

Qty

Rate

Amount

1 January

Purchases

300

$7

$2,100

8 January

Purchases

450

$8

$3,600

29 January

Purchases

750

$9

$6,750

Sold

600

$ 9

$5,400

150

$9

$1,350

450

$8

$3,600

300

$7

$2,100

Ending

1,500

$12,450

600

$ 5,400

900

$ 7,050

Weighted average (Periodic)

Receipts

Cost of Goods Sold

Balance

Description

Qty

Rate

Amount

Qty

Rate

Amount

Qty

Rate

Amount

1 January

Purchases

300

$7

$2,100

8 January

Purchases

450

$8

$3,600

29 January

Purchases

750

$ 9                

$6,750

Goods available for sale

1,500

$8.30

$12,450

Sold

600

$8.30

$4,980

900

$8.30

$7,470

Ending

3,000

$12,450

600

$ 4,980

900

$ 7,470

	FIFO	LIFO	Weighted Average Cost
Cost of Goods Available for Sale	$ 12,450	$ 12,450	$ 12,450
Ending Inventory	($ 7,950 )	($ 7,950)	($ 7,470)
Cost of Goods Sold	$ 4,500	$ 4,500	$ 4,980