Question
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kikis records show the following for the month of January. Sales totaled 260 units
| Date | Units | Unit Cost | Total Cost | |||||||
| Beginning Inventory | January 1 | 100 | $ | 75 | $ | 7,500 | ||||
| Purchase | January 15 | 360 | 95 | 34,200 | ||||||
| Purchase | January 24 | 240 | 115 | 27,600 | ||||||
Required:
- Calculate the number and cost of goods available for sale.
- Calculate the number of units in ending inventory.
- Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Global Edition
9781292437156
