Alrcard Corporation tracks the number of units purchased and sold throughout each accounting perlod but applies its Inventory costing method at the end of each perlod as if it uses a periodic Inventory system. The following are the transactions for the month of July. Units 2,000 1,eee 6,000 3,000 8,000 5,e00 Unit Cost $ 25 July 1 July 5 July 13 July 17 July 25 July 27 Beginning Inventory Sold Purchased Sold Purchased 29 31 Sold Calculate the cost of goods avalable for sale, ending Inventory, and cost of goods sold if Aircard uses (a) FIFO, (b) LIFO, or (c) welghted average cost. (Round "Cost per Unit" to 2 decimal places.) Weighted Average Cost FIFO LIFO Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold

FINANCIAL ACCOUNTING
10th Edition
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Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**Inventory Management Analysis for Aircard Corporation**

Aircard Corporation 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. The following are the transactions for the month of July:

| Date    | Transaction             | Units  | Unit Cost |
|---------|-------------------------|--------|-----------|
| July 1  | Beginning Inventory     | 2,000  | $25       |
| July 5  | Sold                    | 1,000  |           |
| July 13 | Purchased               | 6,000  | $29       |
| July 17 | Sold                    | 3,000  |           |
| July 25 | Purchased               | 8,000  | $31       |
| July 27 | Sold                    | 5,000  |           |

**Objective:**

Calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircard uses:
- (a) FIFO (First-In, First-Out)
- (b) LIFO (Last-In, First-Out)
- (c) Weighted Average Cost

**Instructions:**

Round "Cost per Unit" to 2 decimal places.

**Table Completion:**

|                           | FIFO | LIFO | Weighted Average Cost |
|---------------------------|------|------|-----------------------|
| Cost of Goods Available for Sale |      |      |                       |
| Ending Inventory          |      |      |                       |
| Cost of Goods Sold        |      |      |                       |

Fill in the table by calculating the respective values using the inventory cost methods specified.
Transcribed Image Text:**Inventory Management Analysis for Aircard Corporation** Aircard Corporation 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. The following are the transactions for the month of July: | Date | Transaction | Units | Unit Cost | |---------|-------------------------|--------|-----------| | July 1 | Beginning Inventory | 2,000 | $25 | | July 5 | Sold | 1,000 | | | July 13 | Purchased | 6,000 | $29 | | July 17 | Sold | 3,000 | | | July 25 | Purchased | 8,000 | $31 | | July 27 | Sold | 5,000 | | **Objective:** Calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircard uses: - (a) FIFO (First-In, First-Out) - (b) LIFO (Last-In, First-Out) - (c) Weighted Average Cost **Instructions:** Round "Cost per Unit" to 2 decimal places. **Table Completion:** | | FIFO | LIFO | Weighted Average Cost | |---------------------------|------|------|-----------------------| | Cost of Goods Available for Sale | | | | | Ending Inventory | | | | | Cost of Goods Sold | | | | Fill in the table by calculating the respective values using the inventory cost methods specified.
Expert Solution
Step 1

The periodic method of inventory is a different method that says inventory should be calculated at the end of the accounting period.

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