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SERIAL PROBLEM: KATE'S CARDS Note: This is a continuation of the Serial Problem: Kate's Cards from Chapters I through 5.) SP6 As expected, the holiday

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SERIAL PROBLEM: KATE'S CARDS Note: This is a continuation of the Serial Problem: Kate's Cards from Chapters I through 5.) SP6 As expected, the holiday season was very busy for Kate and her greeting card company. In fact, most of her supplies were fully depleted by year-end, necessitating a restocking of inventory. Assume that Kate uses the periodic method of accounting for inventory and that her January beginning inventory was S0. The following transactions occurred for Kate's Cards during January of the New Year: Purchases Units Unit Cost Total Cost Jan. 10 Jan. 17 Jan. 23 400 @ $3.00 per unit $3.50 per unit $4.00 per unit $1,200 1,750 500 300 1,200 Total $4,150 1,200 Sales 360 Jan. 15 420 Jan. 21 380 Jan. 27 1,160 Total Required Calculate the company's cost of goods sold and value of ending inventory for the month of Janu- ary using (1) FIFO, (2) LIFO, and (3) the weighted-average cost method. Round the cost per unit to 3 decimal places and round your final answers to the nearest dollar. b. If the net realizable value of Kate's inventory is $4.00 per unit on be reported for her ending inventory on the January 31 balance sheet under each of the three inventory costing methods? a. January 31, what value should a Total Cost Units Beginning inventory Cost of goods available for sale Units in ending inventory a 1 FIFO Units Cost Total 1 Cost of goods available for sale Less: ending inventory 4 2 400 3 500 4 Cost of goods sold 300 4 5 6 7 a 2 8 LIFO Units Cost Total 1 Ending inventory 2 3 ICost of aoode auailahla for cala Total Cost Units 29 30 Ending inventory 31 32 Cost of goods available for sale Less: ending inventory Cost of goods sold 33 34 35 36 37 38 a 3 Weighted average cost per unit Ending inventory 41 39 40 Cost of goods sold 42 43 44 45 46 47 48 49 50

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