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A Company Sells a Single Product and Had the Following

Question 124

Essay

A company sells a single product and had the following beginning inventory, purchases, and sales during March.
 Number wi units  Price per unit  Beginning Inventory 208 March 6  Purchase 40108 Purchase 50910 Sale 451312 Sale 351330 Purchase 257\begin{array} { | r | r | r | r | } \hline & & \text { Number wi units } & \text { Price per unit } \\\hline & \text { Beginning Inventory } & 20 & 8 \\\hline \text { March 6 } & \text { Purchase } & 40 & 10 \\\hline 8 & \text { Purchase } & 50 & 9 \\\hline 10 & \text { Sale } & 45 & 13 \\\hline 12 & \text { Sale } & 35 & 13 \\\hline 30 & \text { Purchase } & 25 & 7 \\\hline\end{array} Calculate the cost of the ending inventory under each assumption below:

(1) The compary uses a periodic inventory systern ard determiries cost on a FIFO basis.
Endinig inventory cost_________________

(2) The compary uses a periodic irmentory system ard deterniries cost an a weighted average basis. (Round average cost per wit to 2 decimals.)
Endinig invenitory cost__________________

Correct Answer:

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(1) Periodic FIFO
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