Question

nventory 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 Jan. 1 200 $21 Purchases: Feb. 11 500 $25 May 18 400 27 Oct. 23 100 31 Sales: March 1 400 July 1 400 Calculate the value of ending inventory and cost of goods sold using the periodic method and (a) first-in, first-out, (b) last-in, first-out, and (c) weighted-average cost method.

Answer 1

	Units	Unit cost	Total
Beginning Inventory	200	21	4200
Purchases:
Feb. 11	500	25	12500
May 18	400	27	10800
Oct. 23	100	31	3100
Total	1200		30600
Average cost = 30600/1200 = $25.50
Ending inventory units = 1200-400-400 = 400
a
First-in, first-out:
Ending inventory	11200	=(100*31)+(300*27)
Cost of goods sold	19400	=30600-11200
b
Last-in, first-out:
Ending inventory	9200	=(200*21)+(200*25)
Cost of goods sold	21400	=30600-9200
c
Weighted-average cost:
Ending inventory	10200	=400*25.5
Cost of goods sold	20400	=30600-10200