Inventory costing methods

1. Calculate cost of ending inventory and cost of goods sold using periodic FIFO, LIFO, and Weighted Average Cost methods

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A B D E 1 Better Bottles, Inc., uses a periodic inventory system and has the following information available: 2 3 Description # of Units Cost per Unit Total Cost 4 Beginning Inventory 20 $ 20.00 $ 400.00 5 Jan. 15 Purchase 27 22.00 594.00 6 Jan. 20 Purchase 33 30.00 990.00 7 Goods Available for Sale 80 $ 1,984.00 8 Less: January Sales 36 9 Ending Inventory 44 10 11 12 Required: 13 1) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic FIFO. 14 FIFO Ending Inventory # of Units Cost per Unit Total Cost 15 16 Description 17 Jan. 20 Purchase 18 Jan. 15 Purchase 19 44 20 21 22 Description 23 Beginning Inventory 24 Jan. 15 Purchase 25 FIFO Cost of Goods Sold # of Units Cost per Unit Total Cost 36 26 A B D E F. 26 27 2) Calculate both the Ending Inventory and Cost of Goods Sold using Periodic LIFO. 28 LIFO Ending Inventory # of Units Cost per Unit Total Cost 29 30 Description 31 Beginning Inventory 32 Jan. 15 Purchase 33 44 34 LIFO Cost of Goods Sold # of Units Cost per Unit Total Cost 35 36 Description 37 Jan. 20 Purchase 38 Jan. 15 Purchase 39 36 40 41 3) Using Periodic Weighted Average, first calculate the cost per unit using the formula below. 42 Next, apply that same cost per unit to calculate both the Ending Inventory and Cost of Goods Sold. 43 44 45 Weighted Average Cost = Cost of Goods Available for Sale Number of Units Available for Sale 46 = per unit 47 48 Weighted Average Ending Inventory # of Units Cost per Unit Total Cost 49 50 51 52 Weighted Average Cost of Goods Sold # of Units Cost per Unit Total Cost 53 54 55 4) Use the given information and your calculated numbers to complete the Cost of Goods Sold Equation below for all three inventory methods. (All numbers should be positive.) FIFO LIFO Wtd. Avg. Beginning Inventory Add: Purchases Goods Available for Sale Less: Ending Inventory Cost of Goods Sold