Question

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies...

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki’s records show the following for the month of January. Sales totaled 260 units

Date Units Unit Cost Total Cost
Beginning Inventory January 1 100 $ 75 $ 7,500
Purchase January 15 360 95 34,200
Purchase January 24 240 115 27,600

Required:

  1. Calculate the number and cost of goods available for sale.
  2. Calculate the number of units in ending inventory.
  3. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.

Homework Answers

Answer #1

1) Number and Cost of goods available for sale

Date Units Unit Cost Total Cost
Beginning Inventory January 1 100 75 7,500
Purchase January 15 360 95 34,200
Purchase January 24 240 115 27,600
700 69,300

2) Number of units in ending inventory

Number of goods available for sale 700 units
Sales 260 units
Ending Inventory 440 units

3) Cost of ending inventory and Cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods

Cost of ending inventory Cost of goods sold
FIFO (240*115+200*95) = 46,600 69,300-46,600 = 22,700
LIFO (100*75+340*95) = 39,800 69,300-39,800 = 29,500
Weighted average cost (69,300/700*440) = 43,560 69,300-43,560 = 25,740
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