The college campus bookstore uses a periodic inventory system. The bookstore pur
ID: 2450833 • Letter: T
Question
The college campus bookstore uses a periodic inventory system. The bookstore purchases 420 copies of a textbook at $71 each in June, 970 copies in August at $73 each, and 630 copies in December at $76 each. The bookstore sold 1,850 copies of the textbook during the year. Required: Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods. a. FIFO b. LIFO c. Weighted Average cost method. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)
Explanation / Answer
Answer
(a) FIFO
(b) LIFO
(c) Weighted Average cost method
Month Particulars Units Rate Amount June Purchase 420 71 29820 August Purchase 970 73 70810 December Purchase 630 76 47880 Total 2020 148510 Less: Sales: 1850: (FIFO) June Purchase 420 71 29820 August Purchase 970 73 70810 December Purchase: 1850-420-970 460 76 34960 Cost of goods sold total 1850 135590 Closing Stock: (2020-1850), (148510-135590) 170 76 12920