Please answer the following Orion Iron Corp. tracks the number of units purchase
ID: 2411694 • Letter: P
Question
Please answer the following
Orion Iron Corp. tracks the number of units purchased and sold throughout each year but apples ts inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31 Unit Units Cost 300 $13 Transactions a. Inventory, Beginning For the year b Purchase, April 11 c. Purchase, June 1 d Sale, May 1 (sold for $41 per unit) e. Sale, July 3 (sold for $41 per unit) f Operating expenses (excluding income tax expense) $18,100 900 /11 / 800 300 CIDTCON620 11 14 Required: 1. Calculate the number and cost of goods available for sale Caircuda t the number and cost of gods avaiabse Number of Goods Available for Sale units Cost of Goods Available for Sale 2. Calculate the number of units in ending inventory Ending Inventory units 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Cost of Ending Cost of Goods Inventory Sold FIFO LIFO Weighted Average CostExplanation / Answer
1.
Number of units available for sale = 300 + 900 + 800 = 2,000 units
Cost of goods available for sale = 300 x $ 13 + 900 x $ 11 + 800 x $ 14 = $ 25,000.
2.
Ending inventory = Number of units available for sale - Units sold = 2,000 - 920 = 1,080 units
3.
4.
5. LIFO.
Number of Units Available for Sale 2,000 units Cost of Googs Available for Sale $ 25,000