Problem 7-7

Compute ending inventory and cost of goods sold under FIFO, LIFO, and weighted-average using perpetual and periodic inventory procedures (L.O.3)

The following data relate to the beginning nventory, purchases, and sales of Braxton Company for the year 2012:

a. Assuming use of the perpetual inventory procedure, compute the ending inventory and cost of goods sold under each of the following methods: (1) FIFO, (2) LIFO, and (3) weighted-average (carry unit cost to four decimal places and round total cost to nearest dollar).

b. Repeat a assuming use of the periodic inventory procedure.

Unit Cost 1,400 $5.04 Units Merchandise Inventory, January 1 Purchases: February 2 April 5 June 15 September 30 November 28 1,000 @ 4.80 2,000 @ 3.60 1,200 @ 3.00 1,400 2.88 1,800 @ 4.20 Sales: March 10 May 15 July 6 August 23 December 22 900 1,800 800 600 2,500