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Title: Calculate cost of goods sold and ending inventory using 3 periodic cost flow methods. Post by: 755872 on Jan 12, 2021 In its first month of operations, Quilt Company made 3 purchases of merchandise in the following sequence: 300 units at $6, 400 units at $7, and 300 units at $8. There are 400 units on hand at the end of the period. Quilt uses a periodic inventory system. Calculate the cost to be allocated to cost of goods sold and ending inventory under (a) the FIFO method, (b) the weighted average cost method, and (c) the LIFO method.
Title: Re: Calculate cost of goods sold and ending inventory using 3 periodic cost flow methods. Post by: bolbol on Jan 12, 2021 Answer:
(1) $2,720 (2) $2,220 Explanation: Given the following sequence: 300 units at $6, 400 units at $7 and 200 units at $8 (1) FIFO method Ending inventory = 360 units Cost of ending Inventory: = 300 units at $8 + 400 units at $7 = 300 × $8 + 400 × $7 = 2,400 + 2,800 = $5,200 (2) LIFO method Cost of ending Inventory: = 300 units at $6 + 60 units at $7 = 300 × $6 + 60 × $7 = 1,800 + 420 = $2,220 Title: Re: Calculate cost of goods sold and ending inventory using 3 periodic cost flow methods. Post by: 755872 on Jan 12, 2021 You are incorrect... these are the answers just don't understand how they got these answers.
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