Question

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.

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