Question

# Bill’s Bakery began the month of August with 50 units of inventory valued at \$8 per...

Bill’s Bakery began the month of August with 50 units of inventory valued at \$8 per unit. Bill’s purchased another 70 units paying \$567 in total. Bill’s purchased more units for \$8.65 each paying a total of \$259.50. During August, Bill’s sells 140 units at a price of \$15 each.

Determine the number of units, cost per units and total costs for the inventory available for sale.

Determine Bill’s Revenue for the month of August.

Assuming Bill’s uses the weighted-average costing method, calculate the COGS.

Assuming Bill’s uses the FIFO costing method, calculate the COGS.

Assuming Bill’s uses the LIFO costing method, calculate the COGS.

Calculate ending inventory under the (1) weighted-average (2) FIFO and (3) LIFO costing methods.

Determine the number of units, cost per units and total costs for the inventory available for sale.

 Units Rate Amount Beg Inventory 50 8.00 400 Purchase 70 8.10 567 Purchase 30 8.65 259.5 150 1226.5

Determine Bill’s Revenue for the month of August.

140 Units *15 =\$2100

Assuming Bill’s uses the weighted-average costing method, calculate the COGS.

COGS=1226.5/150*140 Units

=\$1144.73

Assuming Bill’s uses the FIFO costing method, calculate the COGS.

=50*8+70*8.10+20*8.65

=\$1140

Assuming Bill’s uses the LIFO costing method, calculate the COGS.

COGS=40*8+70*8.10+30*8.65

=\$1146.50

Calculate ending inventory under the (1) weighted-average (2) FIFO and (3) LIFO costing methods.

 weighted-average FIFO LIFO Avialabe For Sales A 1226.5 1226.5 1226.5 COGs B 1144.73 1140 1146.50 ending inventory A-B 81.77 86.50 80.00

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