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Exercise 7-17 Inventory Costing Methods Hahn Hardware COGS

Exercise 7-17
Inventory Costing Methods
Hahn Hardware provides the following information relating to its June inventory activity. Hahn uses a perpetual inventory system.

Required:
a. Put Hahn's given information into a cost of goods sold model. What is unknown?

b. Compute the ending inventory and cost of goods sold using the FIFO, LIFO, and moving average costing methods.

date transaction units cost total
1-Jun bal 13 $8.00 $104.00
7-Jun purchase 22 $9.50 $209.00
12-Jun sale 20
18-Jun purchase 10 $10.25 $102.50
20-Jun sale 14
26-Jun purchase 16 $11.00 $176.00
30-Jun sale 15

FIFO LIFO Moving Average
Ending inventory $ _________________
$ _________________
$ _________________
Cost of goods
sold
$ _________________
$ _________________
$ _________________
c. Calculate the sum of the ending inventory and cost of goods sold for each method.
FIFO LIFO Moving Average
Beginning
inventory
$
_________________
$
_________________
$
__________

Solution Preview

See you tutorial attached for proper formatting and to see computations (click in cells).

date transaction units cost total
1-Jun bal 13 $8.00 $104.00
7-Jun purchase 22 $9.50 $209.00
12-Jun sale 20
18-Jun purchase 10 $10.25 $102.50
20-Jun sale 14
26-Jun purchase 16 $11.00 $176.00 ...

Solution Summary

See you tutorial attached for proper formatting and to see computations (click in cells).

$2.19