Question

Carstow uses the periodic inventory method. (In the periodic method it is assumed that all sales occur the last day of the accounting period – or after all purchases during the period.) Carstow had the following inventory transactions in May, of the current year. On May 1, Carstow had 250 units in inventory that cost $8 each. On May 14, Carstow purchased 800 units at $10 each. On May 20, Carstow purchased 60 units at $13 each. On May 24, Carstow purchased 110 units at $14 each. Carstow sold 840 units on May 28th for $28 each. Do a computation for items 1-6 in the left column. Then, match the computations to the description. There may be extra choices in the right column that will not be used. Round the weighted average cost per unit to the nearest penny for those computations. (Final answer should be rounded to the nearest dollar.)

1. Sales revenue

2. Total cost of goods available for sale during the period

3. Cost of goods sold under FIFO

4. Cost of goods sold under LIFO

5. Cost of ending inventory under LIFO

6. Cost of goods sold under weighted average

A. $3,300 B. $3,838 C. $4,420 D. $7,900 E. $8,484 F. $9,020 G. $12,320 H. $23,520