Fortune Stores uses the periodic inventory system for its merchandise inventory. The April 1 inventory for one of the items in the merchandise inventory consisted of 120 unites with a unite cost of $330. Transaction for this item during April were as following:
a. Calculate the cost of goods sold and the ending inventory cost for the month of April using the weighted-average cost method. Round your final answer to the nearest dollar.
b. Calculated the cost of goods sold and the ending inventory cost for the month of April using the first-in, first-out method.
c. Calcualted the cost of goods sold and the ending inventory cost for the month of April using the last-in, last-out method.
|April 1||Beginning Inventory||120||330|
|April 14||Sold (80 unties @ $550)|
|April 29||Sold (40 unites @ $550)|
(a) weighted-average cost per unit = Total cost / total units
= (120 x330 + 40 x345+ 20x 350) / (120 + 40 + 20)
= $60,400 / 180
cost of goods sold = units sold x $335.56 = 120 x $335.56 = $40,267.20
ending inventory cost = units the end x $335.56 = 60x $335.56 = $20,133.60
(b) FIFO method
cost of goods sold = 80 x $330 + 40 x $330 = $39,600
ending inventory cost = 40 x$345 +20 x $350 = $20800
(c) LIFO method
cost of goods sold = 40 x $345 + 40 x $330 + 20 x $350 + 20 x $330 =$40,600
ending inventory cost = 60 x $330 = $19,800
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