13.24Cost of sales periodic inventory system

LO2, 4

The following information relates to the inventory of Harry's Hardware during the month of December.

Units

Unit cost

Total cost

Dec.1

Beginning inventory

500

$ 5.00

$ 2500

10

Purchases

500

5.30

2650

23

Purchases

600

5.60

3360

1600

$8510

Harry's Hardware uses the periodic inventory system. During the month, 700 units were sold for $6300. A physical stocktake on 31 December verified that 590 units were on hand. Ignore GST.

Required

1. Prepare income statement up to gross profit for December using each of the following costing methods:
2. specific identification, assuming that 300 units were sold from the beginning inventory and 400 units were sold from the first purchase
3. FIFO
4. LIFO
5. weighted average.