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Periodic and Perpetual Systems -Calculating Ending Inventory and Cost of Sales using Average Cost, Moving Average, FIFO, LIFO, and Dollar-Value LIFO The inventory records of Mod Oil Company for January 2020 showed the following data for an item of its merchandise for sale (assume that the six transactions occurred in the order shown). Date Units Unit Cost Total Beginning inventory (Jan. 1) 900 $6.00 $5,400 Jan. 3 Purchases 1,080 6.10 6,588 Jan. 5 Sales (1,620 units) Jan. 10 Purchases 1,080 6.20 6,696 Jan. 20 Sales (900 units) Jan. 25 Purchases 720 6.30 4.536 Jan. 28 Sales (540 units) Total available for sale 3,780 $23,220 Its ending inventory of 720 units can be specifically identified as follows: 180 units from the January 3 purchase, 90 units from the January 10 purchase, and 450 units from the January 25 purchase. Compute ending inventory and cost of goods sold for the month ended January 31 using the methods indicated below. • Round your final answer to the nearest whole dollar. • Do not round per unit costs in your calculations. Periodic Inventory System Ending Inventory a. Specific identification (periodic)S b. Average cost (periodic) c. FIFO (periodic) d. LIFO (periodic) e. Moving average (perpetual) f. FIFO (perpetual) g. LIFO (perpetual) COGS h. Dollar value LIFO* *Assume that the beginning inventory is the base layer at a cost of $6.00 per unit. The price index for January 2020 is 1.05.

Periodic and Perpetual Systems -Calculating Ending Inventory and Cost of Sales using Average Cost, Moving Average, FIFO, LIFO, and Dollar-Value LIFO The inventory records of Mod Oil Company for January 2020 showed the following data for an item of its merchandise for sale (assume that the six transactions occurred in the order shown). Date Units Unit Cost Total Beginning inventory (Jan. 1) 900 $6.00 $5,400 Jan. 3 Purchases 1,080 6.10 6,588 Jan. 5 Sales (1,620 units) Jan. 10 Purchases 1,080 6.20 6,696 Jan. 20 Sales (900 units) Jan. 25 Purchases 720 6.30 4.536 Jan. 28 Sales (540 units) Total available for sale 3,780 $23,220 Its ending inventory of 720 units can be specifically identified as follows: 180 units from the January 3 purchase, 90 units from the January 10 purchase, and 450 units from the January 25 purchase. Compute ending inventory and cost of goods sold for the month ended January 31 using the methods indicated below. • Round your final answer to the nearest whole dollar. • Do not round per unit costs in your calculations. Periodic Inventory System Ending Inventory a. Specific identification (periodic)S b. Average cost (periodic) c. FIFO (periodic) d. LIFO (periodic) e. Moving average (perpetual) f. FIFO (perpetual) g. LIFO (perpetual) COGS h. Dollar value LIFO* *Assume that the beginning inventory is the base layer at a cost of $6.00 per unit. The price index for January 2020 is 1.05.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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Periodic and Perpetual Systems -Calculating Ending Inventory and Cost of Sales using Average Cost, Moving Average, FIFO, LIFO, and Dollar-Value LIFO The inventory records of Mod Oil Company for January 2020 showed the following data for an item of its merchandise for sale (assume that the six transactions occurred in the order shown). Date Units Unit Cost Total Beginning inventory (Jan. 1) 900 $6.00 $5,400 Jan. 3 Purchases 1,080 6.10 6,588 Jan. 5 Sales (1,620 units) Jan. 10 Purchases 1,080 6.20 6,696 Jan. 20 Sales (900 units) Jan. 25 Purchases 720 6.30 4,536 Jan. 28 Sales (540 units) Total available for sale 3,780 $23,220 Its ending inventory of 720 units can be specifically identified as follows: 180 units from the January 3 purchase, 90 units from the January 10 purchase, and 450 units from the January 25 purchase. Compute ending inventory and cost of goods sold for the month ended January 31 using the methods indicated below. • Round your final answer to the nearest whole dollar. • Do not round per unit costs in your calculations. Periodic Inventory System Ending Inventory COGS a. Specific identification (periodic) $ 2$ b. Average cost (periodic) c. FIFO (periodic) d. LIFO (periodic) e. Moving average (perpetual) f. FIFO (perpetual) g. LIFO (perpetual) h. Dollar-value LIFO* *Assume that the beginning inventory is the base layer at a cost of $6.00 per unit. The price index for January 2020 is 1.05.
Transcribed Image Text:Periodic and Perpetual Systems -Calculating Ending Inventory and Cost of Sales using Average Cost, Moving Average, FIFO, LIFO, and Dollar-Value LIFO The inventory records of Mod Oil Company for January 2020 showed the following data for an item of its merchandise for sale (assume that the six transactions occurred in the order shown). Date Units Unit Cost Total Beginning inventory (Jan. 1) 900 $6.00 $5,400 Jan. 3 Purchases 1,080 6.10 6,588 Jan. 5 Sales (1,620 units) Jan. 10 Purchases 1,080 6.20 6,696 Jan. 20 Sales (900 units) Jan. 25 Purchases 720 6.30 4,536 Jan. 28 Sales (540 units) Total available for sale 3,780 $23,220 Its ending inventory of 720 units can be specifically identified as follows: 180 units from the January 3 purchase, 90 units from the January 10 purchase, and 450 units from the January 25 purchase. Compute ending inventory and cost of goods sold for the month ended January 31 using the methods indicated below. • Round your final answer to the nearest whole dollar. • Do not round per unit costs in your calculations. Periodic Inventory System Ending Inventory COGS a. Specific identification (periodic) $ 2$ b. Average cost (periodic) c. FIFO (periodic) d. LIFO (periodic) e. Moving average (perpetual) f. FIFO (perpetual) g. LIFO (perpetual) h. Dollar-value LIFO* *Assume that the beginning inventory is the base layer at a cost of $6.00 per unit. The price index for January 2020 is 1.05.
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