Aranas Manufacturing, a tool retailer, began year 20x7 with 21,500 units of product in its January 1 inventory, at a cost of $12.50 for each unit. It made successive purchases of its product in year 20x7, as follows. The company uses a periodic inventory system. On December 31, 20x7, a physical count reveals that 35,000 units of its product remain in inventory.

Mar. 7	25,000 units	@ $16 each
May 25	41,500 units	@ $19 each
Aug. 1	22,750 units	@ $23 each
Nov. 10	38,100 units	@ $24 each

Instructions

Using the template provided below.

1. Compute the number and total cost of the units available for sale in year 20x7.
2. Compute the amounts assigned to the 20x7 ending inventory, and the cost of goods sold for FIFO, LIFO, and weighted average.
3. The 113,850 units sold are $31 each. Prepare comparative income statements for the three inventory costing methods of FIFO, LIFO, and weighted average, which include a detailed cost of goods sold section as part of each statement. (Round your average cost per unit to 2 decimal places.)

A B D E F 5 6 Cost Units 21,500 Total 268750 7 12.5 8 9 400000 10 Beginning Purchases: March 7 May 25 August 1 November 10 Units available for sale 25,000 41,500 22,750 38,100 16 19 23 24 11 788500 523250 914400 12 13 148,850 $ 2,894,900.00 14 15 Ending units Unit Cost FIFO LIFO Weighted Average 16 17 18 19 20 21 22 23 24 25 26 FIFO LIFO Weighted Average 27 Comparative Income Statement Sales Cost of goods sold Gross Profit 28 29 30