Check m Problem 6-7AA Perlodic: Alternative cost flows LO P3 Seminole Company be
ID: 2550312 • Letter: C
Question
Check m Problem 6-7AA Perlodic: Alternative cost flows LO P3 Seminole Company began year 2017 with 29,000 units of product in its January 1 inventory costing $16.80 each. It made successive purchases of its product in year 2017 as follows. The company uses a periodic inventory system. On December 31,2017, a physical count reveals that 53,000 units of its product remain in inventory Mar. 7 46, 000 units e $19.80 each May 25 48, 000 units $23.80 each Aug. 1 38,000 units@$25.80 each Nov. 10 42,000 units@$28.80 each Required: 1. Compute the number and total cost of the units available for sale in year 2017 2. Compute the amounts assigned to the 2017 ending inventory and the cost of goods sold using (a FIFO ( average. LIFO. and (c) weighted Complete this questions by entering your answers in the tabs below Required 1 Required 2Explanation / Answer
1. Number of units available for sale in year 2017 : 203,000.
Cost of units available for sale in year 2017: $ 4,730,400
2.
FIFO periodic cost of ending inventory = 42,000 x $ 28.80 + 11,000 x $ 25.80 = $ 1,209,600 + $ 283,800 = $ 1,493,400
LIFO periodic cost of ending inventory = 29,000 x $ 16.80 + 24,000 x $ 19.80 = $ 487,200 + $ 475,200 = $ 962,400
Weighted average cost of ending inventory = $ 4,730,400 / 203,000 x 53,000 = $ 1,235,031.
Date Transaction/ Event Units Cost per Unit Amount $ $ Jan 1, 2017 Beginning Balance 29,000 16.80 $ 487,200 Mar 7, 2017 Purchase 46,000 19.80 910,800 May 25, 2017 Purchase 48,000 23.80 1,142,400 Aug 1, 2017 Purchase 38,000 25.80 980,400 Nov 10, 2017 Purchase 42,000 28.80 1,209,600 Available for Sale 203,000 $ 4,730,400 Units Sold 150,000 Units in Ending Inventory 53,000