PB7-1 (Algo) Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System [LO 7-3]

Mojo Industries tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the accounting period, January 31. The inventorys selling price is $14 per unit.

Transactions	Unit Cost	Units	Total Cost
Inventory, January 1	$ 5.00	310	$ 1,550
Sale, January 10		(200)
Purchase, January 12	5.50	360	1,980
Sale, January 17		(150)
Purchase, January 26	6.50	80	520

Required:

Compute the amount of goods available for sale, ending inventory, and cost of goods sold at January 31 under each of the following inventory costing methods: a. Weighted average cost. b. First-in, first-out. c. Last-in, first-out. d. Specific identification, assuming that the January 10 sale was from the beginning inventory and the January 17 sale was from the January 12 purchase.