CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 3 Not complete Marked out of 6
ID: 2571886 • Letter: C
Question
CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 3 Not complete Marked out of 6.00 P Flag question Inventory Costing Methods-Periodic Method The following data are for the Graham Corporation, which sells just one product: Units Unit Cost Beginning Inventory, January 1 1,200 Purchases February 11 1,500 1,400 1,100 1,400 1,400 1,000 $24 $25 May 18 October 23 March 1 uly 1 October 29 28 Sales Calculate the value of ending inventory and cost of goods sold at year-end using the periodic method and (a) first-in, first-out, (b) last-in, first-out, and (c) weighted-average cost method Hint: For weighted-average cost, round the cost per unit to 3 decimal places and round your final answers to the nearest dollar a. First-in, First-out: Ending Inventory$ S Cost of goods sold b. Last-in, first-out: Ending Inventory$ Cost of goods soldExplanation / Answer
Number of units available for sale = Beginning Inventory + Number of units purchased
Number of units available for sale = 1,200 + 1,500 + 1,400 + 1,100
Number of units available for sale = 5,200
Cost of Goods available for sale = Beginning Inventory + Cost of Goods purchased
Cost of Goods available for sale = 1,200 * $24 + 1,500 * $25 + 1,400 * $26 + 1,100 * $28
Cost of Goods available for sale = $133,500
Number of units sold = 1,400 + 1,400 + 1,000
Number of units sold = 3,800
First-in, First-out:
Cost of Goods Sold = 1,200 * $24 + 1,500 * $25 + 1,100 * $26
Cost of Goods Sold = $94,900
Ending Inventory = 300 * $26 + 1,100 * $28
Ending Inventory = $38,600
Last-in, First-out:
Cost of Goods Sold = 1,100 * $28 + 1,400 * $26 + 1,300 * $25
Cost of Goods Sold = $99,700
Ending Inventory = 200 * $25 + 1,200 * $24
Ending Inventory = $33,800
Weighted-average:
Cost per unit = Cost of Goods available for sale / Number of units available for sale
Cost per unit = $133,500 / 5,200
Cost per unit = $25.673
Cost of Goods Sold = 3,800 * $25.673
Cost of Goods Sold = $97,557
Ending Inventory = 1,400 * $25.673
Ending Inventory = $35,943