Advanced has been selling cellular phones for the last five years. Its best-selling model is the E-PHONE, and costs have been falling quickly recently (although selling prices to Advanced's customers are stable). The following information pertains to inventory of the E-PHONE for August of the current year: (Click the icon to view the data.) Required a. If Advanced uses the periodic FIFO inventory system, what would be the cost of ending inventory for August? b. If Advanced uses the weighted-average method for costing its periodic inventory, what would be the cost of goods sold for August? Data table If Advanced uses the weighted-average method under a perpetual inventory system, what would be the cost of ending inventory for August? c. Units Units cost Requirement a. If Advanced uses the periodic FIFO inventory system, what would be the cost of ending inventory for August? Compute the ending inventory under FIFO by completing the table below. (When entering sales, enter the oldest cost first, and leave any unused lines blank.) 12,000 $ 30.00 Opening inventory Purchase #1 20.00 Units Unit cost = Total cost Sale #1 Inventory Layer Opening inventory 8,000 $ (7,200) 16,000 $ (10,000) - Purchase #2 17.00 Purchase #1 Sale #2 Sale #1 X 18,800 Total Purchase #2 X Sale #2 Print Done Ending inventory - FIFO Requirement b. If Advanced uses the weighted-average method for costing its periodic inventory, what would be the cost of goods sold for August? (Round the weighted average cost per unit to four decimal places, X.XXXX.) Begin by computing the weighted average cost (WAC) per unit for this requirement. WAC per unit / Next, compute ending inventory under the WAC method, assuming the periodic inventory system. (Round the ending inventory to the nearest whole dollar.) Ending inventory - WAC method Next Advanced has been selling cellular phones for the last five years. Its best-selling model is the E-PHONE, and costs have been falling quickly recently (although selling prices to Advanced's customers are stable). The following information pertains to inventory of the E-PHONE for Augu the current year: (Click the icon to view the data.) Required a. If Advanced uses the periodic FIFO inventory system, what would be the cost of ending inventory for August? b. If Advanced uses the weighted-average method for costing its periodic inventory, what would be the cost of goods sold for August? If Advanced uses the weighted-average method under a perpetual inventory system, what would be the cost of ending inventory for August? C. Next, compute ending inventory under the WAC method, assuming the periodic inventory system. (Round the ending inventory to the nearest whole dollar.) - Ending inventory - WAC method Data table Now, compute the cost of goods sold for the period. Units Cost of goods sold - WAC method Units cost 30.00 Opening inventory Purchase #1 12,000 $ 8,000 $ 20.00 Requirement c. If Advanced uses the weighted-average method under a perpetual inventory system, what would be the cost of ending inventory for August? Compute the ending inventory under the WAC method by completing the table below. (Round all unit cost amounts to three decimal places, X.XXX.) Sale #1 Purchase #2 17.00 (7,200) 16,000 $ (10,000) 18,800 Units Unit cost = Total cost Sale #2 Inventory Layer Opening inventory - Total Purchase #1 X = Balance 1 X - Sale #1 - Print Done Purchase #2 X - Balance 2 X Sale #2 X Ending inventory - WAC Next
