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    Inventory using weighted average, FIFO and LIFO

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    The Dance Company sells ballet shoes. It began in 20X6 with a beginning inventory of 1,000 shoes at a cost of $10 each and made the following purchases during the year:

    February 7 Purchased 3,500 shoes @ $11.50 each
    May 19 Purchased 4,700 shoes @ $12.00 each
    September 3 Purchased 2,300 shoes @ $13.00 each
    The ending inventory consisted of 750 shoes, 500 of which were purchased on
    May 19, and 250 of which were purchased on Sept. 3.


    Assuming DC uses the periodic inventory system, calculate the ending inventory and cost of goods sold under each of the following inventory costing methods:

    A. Weighted-Average (round to two decimal places)
    B. FIFO
    C. LIFO

    Table format

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    Solution Preview

    Period Units Cost per unit Total cost
    Beginning 1,000 $10 $10,000
    7-Feb 3,500 $12 $40,250
    19-May 4,700 $12 $56,400 ...

    Solution Summary

    The solution calculates inventory using weighted average. FIFO and LIFO are examined.