Inventory Costing Methods—Periodic Method The Luann Company uses the periodic inventory system. The following July data are for an item in Luann's inventory: July 1 Beginning inventory 30 units @ $9 per unit 10 Purchased 50 units @ $11 per unit 15 Sold 60 units 26 Purchased 25 units @ $13 per unit Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Note: Round your cost per unit to three decimal places, if needed. Then round your final answers to the nearest dollar. A. First-in, First-out: Ending Inventory Answer Cost of Goods Sold: Answer B. Last-in, first-out: Ending Inventory Answer Cost of Goods Sold: Answer C. Weighted-average cost: Ending Inventory Answer Cost of Goods Sold Answer
Inventory Costing Methods—Periodic Method The Luann Company uses the periodic inventory system. The following July data are for an item in Luann's inventory: July 1 Beginning inventory 30 units @ $9 per unit 10 Purchased 50 units @ $11 per unit 15 Sold 60 units 26 Purchased 25 units @ $13 per unit Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Note: Round your cost per unit to three decimal places, if needed. Then round your final answers to the nearest dollar. A. First-in, First-out: Ending Inventory Answer Cost of Goods Sold: Answer B. Last-in, first-out: Ending Inventory Answer Cost of Goods Sold: Answer C. Weighted-average cost: Ending Inventory Answer Cost of Goods Sold Answer
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 11E: Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the...
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Inventory Costing Methods—Periodic Method
The Luann Company uses the periodic inventory system. The following July data are for an item in Luann's inventory:
| July | 1 | Beginning inventory | 30 | units @ | $9 | per unit |
| 10 | Purchased | 50 | units @ | $11 | per unit | |
| 15 | Sold | 60 | units | |||
| 26 | Purchased | 25 | units @ | $13 | per unit |
Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.
Note: Round your cost per unit to three decimal places, if needed. Then round your final answers to the nearest dollar.
| A. | First-in, First-out: | |
| Ending Inventory | Answer
|
|
| Cost of Goods Sold: | Answer
|
|
| B. | Last-in, first-out: | |
| Ending Inventory | Answer
|
|
| Cost of Goods Sold: | Answer
|
|
| C. | Weighted-average cost: | |
| Ending Inventory | Answer
|
|
| Cost of Goods Sold | Answer
|
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VIEWStep 3: (b) Calculation of cost of goods sold and ending inventory using LIFO method:
VIEWStep 4: (c) Calculation of cost of goods sold and ending inventory using average cost method:
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