Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki’s records show the following for the month of January. Sales totaled 260 units. Date Units Unit Cost Total Cost Beginning Inventory January 1 100 $ 75 $ 7,500 Purchase January 15 360 95 34,200 Purchase January 24 240 115 27,600 Required: Calculate the number and cost of goods available for sale. Calculate the number of units in ending inventory. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.

1. The number and cost of goods available for sale are 700 units and $69,300 respectively.

2. The number of units of ending inventory is 440 units.

3. The costs of ending inventory and goods sold are as follows:

                                        FIFO               LIFO         Weighted-Average

Ending inventory       $46,600        $39,800            $43,560

Cost of goods sold    $22,700        $29,500            $25,740

Data and Calculations:

Date            Transaction              Units   Unit Cost  Total Cost

January 1    Beginning Inventory  100        $ 75        $ 7,500

January 15  Purchase                   360           95         34,200

January 24 Purchase                   240          115          27,600

Number of goods available        700                      $69,300

Ending inventory units                440 (700 - 260)

Average cost  = $99 ($69,300/700)

FIFO:

Ending inventory cost = $46,600 (240 x $115 + 200 x $95)

Cost of goods sold = $22,700 ($69,300 - $46,600)

LIFO:

Ending inventory cost = $39,800 (100 x $75 + 340 x $95)

Cost of goods sold = $29,500 ($69,300 - $39,800)

WEIGHTED-AVERAGE COST:

Ending inventory cost = $43,560 (440 x $99)

Cost of goods sold = $25,740 ($69,300 - $43,560)

Thus, the cost of ending inventory, cost of goods available for sale, and cost of goods sold are computed as above.

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Explanation:

a) FIFO

Units                                Unit costs                           Total cost

100                                   $75                                       $7,500                                  

160                                   $95                                       $15,200

                    Cost of goods sold=                          $22,700

Cost of ending inventory= 200* $95+ 240*$115= $46,600

b) LIFO

Units                                Unit costs                           Total cost

240                                  $115                                     $27,600

20                                    $95                                      $1,900

                    Cost of goods sold=                         $29,500

Cost of ending inventory= 340* $95+ 100*$75= $39,800

c) Weighted average

Average price= = = $99

                  Cost of goods sold=  260* $99= $25,740

Cost of ending inventory= (700-260)*$99= $43,560

answer: heh

explanation: