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Ch $6$ HW $2$

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Periodic inventory by three methods; cost of goods sold

The units of an item available for sale during the year were as follows:

Jan. $1$ Inventory

$50$ units at $$92$

Mar. $10$ Purchase

$50$ units at $$104$

Aug. $30$ Purchase $30$ units at $$112$

Dec. $12$ Purchase $70$ units at $$114$

There are $80$ units of the item in the physical inventory at December $31.$ The periodic inventory system is used.

Determine the ending inventory cost and the cost of goods sold by three methods. In your calculations round average unit cost to the nearest cent,

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Note that this exercise uses the periodic inventory system. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, remaining in the physical inventory times the most recent purchase price. If the number of items in last purchase layer is less than the number in endin most recent purchase cost. The cost of merchandise sold for the period can be calculated by subtracting the ending inventory from the total cost of good Note that this exercise uses the periodic inventory system. LIFO means the last units purchased are assumed to be the first to be sold. Therefore the end beginning inventory$).$ If the number of units in the ending inventory is greater than the units in the beginning inventory, the excess units will be recorded for the period can be calculated by subtracting the ending inventory from the total cost of goods available for sale.

Note that this exercise uses the periodic inventory system. Average unit cost means the average unit cost of all available units purchased is applied to the unit cost by dividing the total cost of all units available for sale by the number of units available for sale. Then multiply the number of items remaining in can be calculated by subtracting the ending inventory from the total cost of goods available for sale.

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