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 units - cost $11
Purchases: Feb. 11 500 units - cost $15
May 18 units 400 - cost 17
Oct. 23 units 100 -cost 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
  Cost of goods sold

B. Last-in, first-out: Ending Inventory
   Cost of goods sold

C. Weighted Average Ending Inventory
Cost of goods sold

Answer 1

Units	Cost per unit	Total Cost
200	$11	$2,200
500	$15	$7,500
400	$17	$6,800
100	$21	$2,100
1,200		$18,600

A.

360 units ending inventory = 100 units from Oct 23 purchases + 260 units from May 18 purchases

Ending Inventory:

= $2,100 + (260 X $17)

= $6,520

Cost of goods sold:

= $18,600 - $6,520

= $12,080

B.

360 units ending inventory = 200 units from Beginning inventory + 160 units from Feb 11 purchases

Ending Inventory:

= $2,200 + (160 X $15)

= $4,600

Cost of goods sold:

= $18,600 - $4,600

= $14,000

C.

Weighted average cost per unit = $18,600 / 1,200 = $15.50

Units sold = 1,200 - 360 = 840

Ending inventory:

= 360 X $15.50

= $5,580

Cost of goods sold:

= 840 X $15.50

= $13,020