The inventory of Product PIT and data on purchases and sales fora two-month period follow. The company closes its books at the endof each month. It uses the periodic inventory system.
Apr. 1 Beginning inventory 50 units @ $204
10 Purchase 100 units @ $220
17 Sale 90 units
30 Ending inventory 60 units
May 2 Purchase 100 units @ $216
14 Purchase 50 units @ $224
22 Purchase 60 units @ $234
30 Sale 200 units
31 Ending inventory 70 units
Required
1. Compute the cost of ending inventory of ProductPIT on April 30 and May 31using the average-cost method. Inaddition, determine cost of goods sold for April and May. Roundunit costs to cents and totals to dollars.
2. Compute the cost of the ending inventory on April 30 and May31 using the FIFO method. In addition, determine cost of goods soldfor April and May. 3. Compute the cost of the ending inventory onApril 30 and May 31 using the LIFO method. In addition, determinecost of goods sold for April and May.
4. Do the cash flows from operations for April and May differdepending on which inventory costing method is usedâaverage-cost,FIFO, or LIFO? Explain.
The inventory of Product PIT and data on purchases and sales fora two-month period follow. The company closes its books at the endof each month. It uses the periodic inventory system.
Apr. 1 Beginning inventory 50 units @ $204
10 Purchase 100 units @ $220
17 Sale 90 units
30 Ending inventory 60 units
May 2 Purchase 100 units @ $216
14 Purchase 50 units @ $224
22 Purchase 60 units @ $234
30 Sale 200 units
31 Ending inventory 70 units
Required
1. Compute the cost of ending inventory of ProductPIT on April 30 and May 31using the average-cost method. Inaddition, determine cost of goods sold for April and May. Roundunit costs to cents and totals to dollars.
2. Compute the cost of the ending inventory on April 30 and May31 using the FIFO method. In addition, determine cost of goods soldfor April and May. 3. Compute the cost of the ending inventory onApril 30 and May 31 using the LIFO method. In addition, determinecost of goods sold for April and May.
4. Do the cash flows from operations for April and May differdepending on which inventory costing method is usedâaverage-cost,FIFO, or LIFO? Explain.
Related questions
Calculating FIFO Inventory Values
The Mann Corporation began operations in 2015. Informationrelating to the companyâs purchases of inventory and sales ofproducts for 2015 and 2016 is presented below.
| 2015 | ||||||
|---|---|---|---|---|---|---|
| January 1 | Purchase | 200 | units | @ | $10 | per unit |
| April 1 | Sold | 120 | units | @ | $25 | per unit |
| July 1 | Purchase | 100 | units | @ | $14 | per unit |
| September 1 | Sold | 130 | units | @ | $25 | per unit |
| 2016 | ||||||
|---|---|---|---|---|---|---|
| January 1 | Purchase | 100 | units | @ | $16 | per unit |
| April 1 | Sold | 80 | units | @ | $30 | per unit |
| July 1 | Purchase | 100 | units | @ | $18 | per unit |
| September 1 | Sold | 100 | units | @ | $35 | per unit |
Calculate the FIFO cost of goods sold and ending inventory for2015 and 2016 assuming use of (a) the periodic method and (b) theperpetual method.
a. FIFO Periodic. Round to nearest whole number.
| 2015 | |
|---|---|
| Cost of goods sold | $Answer |
| Ending inventory | $Answer |
| 2016 | |
|---|---|
| Cost of goods sold | $Answer |
| Ending inventory | $Answer |
b. FIFO Perpetual. Round to nearest whole number.
| 2015 | |
|---|---|
| Cost of goods sold | $Answer |
| Ending inventory | $Answer |
| 2016 | |
|---|---|
| Cost of goods sold | $Answer |
| Ending inventory | $Answer |
Computing LIFO and journalizing inventorytransactions
Energizer Equipment sells hand-held engine analyzers toautomotive service shops. Energizer Equipment started April with aninventory of 125 units that cost a total of $19,250. During themonth, Energizer Equipment purchased and sold merchandise onaccount as follows:
| Apr | 6 | Purchased 65 units @ $160 | |
| Apr | 13 | Sold 50 units @ $300 | |
| Apr | 19 | Purchased 90 units @ $164 | |
| Apr | 25 | Sold 50 units $300 | |
| Apr | 29 | Sold 105 units @ 300 |
Energizer Equipment used the LIFO method. Cash payments onaccount totaled $17,500. Operating expenses for the month were$13,500, with two-thirds paid in cash and the rest accrued asAccounts Payable.
************************!!PLEASE ANSWER THE QUESTION IN THISFORMAT!!*********************
Week 6 Graded Assignment Template
Units available for sale
Number of units | Price per unit | Total cost | |
Beginning Inventory | 125 | $154 | $19,250 |
April 6 purchase | 65 | $160 | $10,400 |
April 19 purchase | 90 | $164 | $14,760 |
Total | 280 | $44,410 | |
Average cost per unit | 280 | 159 |
Units sold =50 + 50 + 105 = 205 units
Units in ending inventory = 280 ? 205 = 75
Inventory method | Number of units | Cost(s) per unit | Total cost applied |
LIFO | |||
Ending inventory | |||
Cost of goods sold | |||
Total cost of goods sold | |||
Inventory method | Number of units | Cost(s) per units | Total cost applied |
FIFO | |||
Ending inventory | |||
Cost of goods sold | |||
Total cost of goods sold |
Inventory method | Number of units | Cost(s) per unit | Total cost applied |
Weighted average | |||
Ending inventory | |||
Cost of goods sold |
