The college campus bookstore uses a periodic inventory system. The bookstore pur
ID: 2521689 • Letter: T
Question
The college campus bookstore uses a periodic inventory system. The bookstore purchases 405 copies of a textbook at $60 each in June, 970 copies in August at $62 each, and 630 copies in December at $65 each The bookstore sold 1,855 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 Cost of Goods Sold Ending Inventory b. LIFO Cost of Goods Sold Ending Inventory c. Weighted Average cost method. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) Cost of Goods Sold Ending InventoryExplanation / Answer
A. FIFO First in first out Calculation of COGS Month No of books Rate Amount June 405 60 24300 Aug 970 62 60140 Dec 480 65 31200 (Balanced unit) (1855 - 405 - 970) 115640 Ending Inventory 150 65 9750 (Valued at latest buy rate of december) B. LIFO Last in first out Calculation of COGS Month No of books Rate Amount June 255 60 15300 (Balanced unit) (1855 - 630 - 970) Aug 970 62 60140 Dec 630 65 40950 116390 Ending Inventory 150 60 9000 (Valued at oldest buy rate of june) C. Weighted Average Method Month No of books Rate Amount June 405 60 24300 Aug 970 62 60140 Dec 630 65 40950 Total 2005 125390 Weighted average Rate (125390/2005) 62.54 No of books Rate Amount COGS 1855 62.54 116012 Ending Inventory 150 62.54 9381