Question

Aircard Corporation 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. The following are the transactions for the month of July.

		Units			Unit Cost
July 1	Beginning Inventory		2,500		$	45
July 5	Sold		1,500
July 13	Purchased		6,500			49
July 17	Sold		3,500
July 25	Purchased		8,500			51
July 27	Sold		5,500

Calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircard uses (a) FIFO, (b) LIFO, or (c) weighted average cost. (Round "Cost per Unit" to 2 decimal places.)

Answer 1

Calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircard uses (a) FIFO, (b) LIFO, or (c) weighted average cost.

	FIFO	LIFO	Weighted average cost
Units available for sale	2500+6500+8500 = 17500	17500	17500
Cost of goods available for Sale	(2500*45+6500*49+8500*51) = 864500	864500	864500
Ending inventory	(7000*51) = 357000	(2500*45+4500*49) = 333000	(864500/17500*7000) = 345800
Cost of goods sold	507500	531500	518700