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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.

Required

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

#### 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.

\$2.19