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.

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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