Question

# Bonita Industries uses the periodic inventory system. For the current month, the beginning inventory consisted of...

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.

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

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