ACCT 110 Lecture 5: Ch 5 Activity - Inventory Solution(2) (1)

Assume that Dunk Coffee Shop completed the following periodic inventory transactions for a line of merchandise​ inventory:

QUESTION: Compute ending merchandise​ inventory, cost of goods​ sold, and gross profit using the​ (1) FIFO inventory costing​ method, (2) LIFO inventory costing​ method, and​ (3) weighted-average inventory costing method.​ (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest​ dollar.)

Begin by determining ending merchandise inventory and cost of goods sold under each of the three methods.

Now compute the gross profit under each inventory costing method.

Jimmie’s Fishing Hole has the following transactions related toits top-selling Shimano fishing reel for the month of June2015. Jimmie’s Fishing Hole uses a periodic inventory system.

Date: Transactions: Units: Cost perUnit: Total Cost:

June 1 Beginninginventory 16 $180 $2880

June 7 Sale 11

June 12 Purchase 10 170 1700

June 15 Sale 12

June 24 Purchase 10 160 1600

June 27 Sale 8

June 29 Purchase 8 150 1200

_____________

$7380

1) Using FIFO, calculate ending inventory and cost of goods soldat June 30, 2015.

Ending inventory:

Cost of goods sold:

2) Using LIFO, calculate ending inventory and cost of goods soldat June 30, 2015

Ending inventory:

Cost of goods sold:

3) Using weighted-average cost, calculate ending inventory andcost of goods sold at June 30, 2015. (Round yourintermediate and final answers to 2 decimal places.)

Ending inventory:

Cost of goods sold:

Required information

Problem 6-1A Perpetual: Alternative cost flows LO P1

[The following information applies to the questionsdisplayed below.]

Warnerwoods Company uses a perpetual inventory system. It enteredinto the following purchases and sales transactions forMarch.

3. Compute the cost assigned to endinginventory using (a) FIFO, (b) LIFO, (c)weighted average, and (d) specific identification. Forspecific identification, the March 9 sale consisted of 80 unitsfrom beginning inventory and 340 units from the March 5 purchase;the March 29 sale consisted of 40 units from the March 18 purchaseand 120 units from the March 25 purchase.

Complete this questions by entering your answers in thebelow tabs.

Perpetual FIFO

Perpetual LIFO

Weighted Average

Specific Id

Compute the cost assigned to ending inventory using FIFO.

Complete this questions by entering your answers in thebelow tabs.

Perpetual FIFO

Perpetual LIFO

Weighted Average

Specific Id

Compute the cost assigned to ending inventory using LIFO.

Perpetual FIFO

Weighted

Complete this questions by entering your answers in thebelow tabs.

Perpetual FIFO

Perpetual LIFO

Weighted Average

Specific Id

Compute the cost assigned to ending inventory using weightedaverage. (Round your average cost per unit to 2 decimalplaces.)

Perpetual LIFO

Compute the cost assigned to ending inventory using specificidentification. For specific identification, the March 9 saleconsisted of 80 units from beginning inventory and 340 units fromthe March 5 purchase; the March 29 sale consisted of 40 units fromthe March 18 purchase and 120 units from the March 25 purchase.

Weighted Average

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