Question

Consider the following information for Maynor Company, which uses a periodic inventory system: Transaction Units Unit Cost Total Cost January 1 Beginning Inventory 21 $ 71 $ 1,491 March 28 Purchase 31 77 2,387 August 22 Purchase 42 81 3,402 October 14 Purchase 47 87 4,089 Goods Available for Sale 141 $ 11,369 The company sold 47 units on May 1 and 42 units on October 28. Required: Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods. FIFO LIFO Weighted Average

Answer 1

FIFO LIFO WEIGHTED AVERAGE

Ending inventory 4494 3878 4193

Cost of Goods Sold 6875 7491 7176

Step-by-step explanation:

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO

RECIEPTS COST OF GOODS SOLD BALANCE

DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $

balance 21 71 1491 21 71 1491

Purchasse

28-Mar 31 77 2387 31 77 2387

22-Aug 42 81 3402 37 81 2997 5 81 405

14-Oct 47 87 4089 47 87 4089

TOTAL 141 11369 89 6875 52 4494

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO

RECIEPTS COST OF GOODS SOLD BALANCE

DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $

balance 21 71 1491 21 71 1491

Purchasse

28-Mar 31 77 2387 31 77 2387

22-Aug 42 81 3402 42 81 3402

14-Oct 47 87 4089 47 87 4089

TOTAL 141 11369 89 7491 52 3878

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE

RECIEPTS COST OF GOODS SOLD BALANCE

DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $

balance 21 71 1491

Purchasse

28-Mar 31 77 2387

22-Aug 42 81 3402

14-Oct 47 87 4089

TOTAL 141 80.63 11369 89 80.63 7176 52 80.63 4193