Question

Inventory Costing Methods-Periodic Method The following information is for the Bloom Company for 2012; the company sells just one product:

		Units	Unit Cost
Beginning Inventory		200	$11
Purchases:	Feb. 11	500	$15
	May 18	400	17
	Oct. 23	100	21

At December 31, 2012, there was an ending inventory of 360 units. Assume the use of the periodic inventory method. Calculate the value of ending inventory and the cost of goods sold for the year using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost method.

Do not round until your final answers. Round your answers to the nearest dollar.

A.	First-in, First-out:
	Ending Inventory	$ Answer
	Cost of goods sold	$ Answer
B.	Last-in, first-out:
	Ending Inventory	$ Answer
	Cost of goods sold	$ Answer
C.	Weighted Average
	Ending Inventory	$ Answer
	Cost of goods sold	$ Answer

Answer 1

A.)	First in First Out
	Ending Inventory	$ 6,520	=100*21+260*17
	Cost of Goods sold	$ 12,080	=200*11+500*15+140*17
B.)	Last In First Out
	Ending Inventory	$ 4,600	=200*11+160*15
	Cost of Goods sold	$ 14,000	=100*21+400*17+340*15
C.)	Weighted Average
	Total Inventory Cost	18,600	=200*11+500*15+400*17+100*21
	Total Inventory Units	1,200	=200+500+400+100
	Cost per Unit	15.50	=18600/1200
	Ending Inventory	$ 5,580	=360*15.5
	Cost of Goods sold	$ 13,020	=18600-5580