Question

Giles Manufacturing uses a periodic inventory system and has the following transactions for the month of June 2018:

Date	Transactions	Units	Cost per Unit	Total Cost
June 1	Beginning inventory	17	$240	$ 4,080
June 7	Sale	12
June 12	Purchase	13	230	2,990
June 15	Sale	11
June 24	Purchase	14	220	3,080
June 27	Sale	15
June 29	Purchase	8	210	1,680
				$11,830

Required:

1. Calculate ending inventory and cost of goods sold at June 30, 2018, using the specific identification method. The June 7 sale consists of beginning inventory, the June 15 sale consists of three units from beginning inventory and eight from the June 12 purchase, and the June 27 sale consists of one unit from beginning inventory and fourteen units from the June 24 purchase.



2. Using FIFO, calculate ending inventory and cost of goods sold at June 30, 2018.



3. Using LIFO, calculate ending inventory and cost of goods sold at June 30, 2018.



4. Using weighted-average cost, calculate ending inventory and cost of goods sold at June 30, 2018. (Do not round your intermediate calculations. Round your answers to the nearest dollar amount.)

Answer 1

Units available for sale = 17+13+14+8 = 52 Units

Sale unit = 12+11+15 = 38 Units

Ending inventory units = 52-38 = 14 UNits

1. Calculate ending inventory and cost of goods sold at June 30, 2018, using the specific identification method.

Cost of goods sold = 12*240+3*240+8*230+1*240+14*220 = 8760

Ending inventory = 11830-8760 = 3070

2. Using FIFO, calculate ending inventory and cost of goods sold at June 30, 2018.

Ending inventory = 8*210+6*220 = 3000

Cost of goods sold = 11830-3000 = 8830

3. Using LIFO, calculate ending inventory and cost of goods sold at June 30, 2018.
Ending inventory = 14*240 = 3360

Cost of goods sold = 11830-3360 = 8470

4. Using weighted-average cost, calculate ending inventory and cost of goods sold at June 30, 2018.

Ending inventory = 11830/52*14 = 3185

Cost of goods sold = 11830-3185 = 8645