Question

Bonita Industries uses the periodic inventory system. For the current month, the beginning inventory consisted of 475 units that cost $64 each. During the month, the company made two purchases: 720 units at $67 each and 358 units at $69 each. Bonita Industries also sold 1195 units during the month. Using the average cost method, what is the amount of ending inventory? (Round average cost per unit to 2 decimal places, e.g. 21.48.)

$23821.

$24702.

$78640.

$79515.

Sheridan uses the periodic inventory system. For the current month, the beginning inventory consisted of 7400 units that cost $11.00 each. During the month, the company made two purchases: 3100 units at $12.00 each and 12100 units at $12.50 each. Sheridan also sold 13000 units during the month. Using the LIFO method, what is the ending inventory?

$120000.

$105600.

$107800.

$114624.

Answer 1

1 . Option : $23821

Explanation:

Average Cost Method
Particulars	Units	Cost per Unit	Total Cost
Beginning Inventory	475	$64.0	$30,400
Purchase	720	$67	$48,240
Purchase	358	$69.00	$24,702
Cost of Goods Available for Sale	1553		$1,03,342
Less: Ending Inventory	358	$66.54	$23,821
Cost of Goods Sold	1195		$79,521

2. Answer : Option : $107,800

Explanation:

LIFO (Periodic)
Particulars	Units	Cost per Unit	Total Cost
Beginning Inventory	7400	$11.0	$81,400
Purchase	3100	$12	$37,200
Purchase	12100	$12.50	$1,51,250
Cost of Goods Available for Sale	22600		$2,69,850
Less: Ending Inventory (7400*11+2200*12)	9600		$1,07,800
Cost of Goods Sold	13000		$1,62,050