Question 6.7: A company reported the following December purchases and sale...

Fundamental Accounting Principles

A company reported the following December purchases and sales data for its only product.

The company uses a periodic inventory system. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) FIFO, (c) LIFO, and (d) weighted average. (Round per unit costs and inventory amounts to cents.) For specific identification, ending inventory consists of 10 units, where 8 are from the December 30 purchase and 2 are from the December 8 purchase.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
Dec . 1	Beginning inventory . . . . . . . . . . . . . .	5 units @ $3 .00 = $ 15 .00
Dec . 8	Purchase . . . . . . . . . . . . . . . . . . . . . . .	10 units @ $4 .50 = 45 .00
Dec . 9	Sales . . . . . . . . . . . . . . . . . . . . . . . . . . .		8 units @ $7 .00
Dec . 19	Purchase . . . . . . . . . . . . . . . . . . . . . . .	13 units @ $5 .00 = 65 .00
Dec . 24	Sales . . . . . . . . . . . . . . . . . . . . . . . . . . .		18 units @ $8 .00
Dec . 30	Purchase . . . . . . . . . . . . . . . . . . . . . . .	8 units @ $5 .30 = 42 .40
Totals		36 units $167.40	26 units

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