Reference no: EM132534623

Question - Aranas Manufacturing, a tool retailer, began year 20x7 with 21,500 units of product in its January 1 inventory, at a cost of $12.50 for each unit. It made successive purchases of its product in year 20x7, as follows. The company uses a periodic inventory system. On December 31, 20x7, a physical count reveals that 35,000 units of its product remain in inventory.

Mar. 7 25,000 units @ $16 each

May 25 41,500 units @ $19 each

Aug. 1 22,750 units @ $23 each

Nov. 10 38,100 units @ $24 each

Instructions - Using the template provided below.

1. Compute the number and total cost of the units available for sale in year 20x7.

2. Compute the amounts assigned to the 20x7 ending inventory, and the cost of goods sold for FIFO, LIFO, and weighted average.

3. The 113,850 units sold are $31 each. Prepare comparative income statements for the three inventory costing methods of FIFO, LIFO, and weighted average, which include a detailed cost of goods sold section as part of each statement.