Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki’s records show the following for the month of January. Sales totaled 340 units. Date Units Unit Cost Total Cost Beginning Inventory January 1 200 $ 80 $ 16,000 Purchase January 15 500 90 45,000 Purchase January 24 300 110 33,000 Required: Calculate the number and cost of goods available for sale. Calculate the number of units in ending inventory. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki’s records show the following for the month of January. Sales totaled 340 units. Date Units Unit Cost Total Cost Beginning Inventory January 1 200 $ 80 $ 16,000 Purchase January 15 500 90 45,000 Purchase January 24 300 110 33,000 Required: Calculate the number and cost of goods available for sale. Calculate the number of units in ending inventory. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 11E: Alternative Inventory Methods Nevens Company uses a periodic inventory system. During November, the...
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Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki’s records show the following for the month of January. Sales totaled 340 units.
| Date | Units | Unit Cost | Total Cost | |
|---|---|---|---|---|
| Beginning Inventory | January 1 | 200 | $ 80 | $ 16,000 |
| Purchase | January 15 | 500 | 90 | 45,000 |
| Purchase | January 24 | 300 | 110 | 33,000 |
Required:
- Calculate the number and cost of goods available for sale.
- Calculate the number of units in ending inventory.
- Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
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