Periodic Method:

Computing Inventory Using LIFO, FIFO, WA, and SI; Financial Impacts; and Inventory

ErrorsCraig Company buys and sells one product. Its beginning inventory, purchases, and sales during calendar-year 2018 follow.

Date Activity Units Acquired at Cost Total Units Sold at Retail Unit Inventory

Jan. 1 Beg. Inventory400 units @ $14 =$5,600-400 units

Jan. 15 Sale--200 units @ $30200 units

Mar. 10 Purchase200 units @ $15 = $3,000-400 units

Apr. 1 Sale--200 units @ $30200 units

May 9 Purchase300 units @ $16 = $4,800-500 units

Sep.22 Purchase250 units @ $20 = $5,000-750 units

Nov. 1 Sale--300 units @ $35450 units

Nov. 28 Purchase100 units @ $21 = $2,100-550 units

-Totals1,250 units$20,500700 units550 units

Track data for specific identification:

1 January 15 sale200 units @ $14,

2 April 1 sale200 units @ $15,

3 November 1 sale200 units @ $14 and 100 units @ $20.

Answer Following Questions:

1. What is the Cost of Good Available for Sale? How many units are available for sale?
2. Using the Periodic System, determine Cost of Goods Sold and Ending Inventory using one of the methods: Specific Identification, Weighted Average, FIFO, or LIFO. Show your work.
3. Explain how the calculation might be different if you used Perpetual System instead.