Orion Iron Corp. tracks the number of units purchased and sold throughout each year but...
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Accounting
Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.
Compute the cost of ending inventory and cost of goods sold under (a) FIFO and (b) weighted average cost. (Round Weighted average cost per unit to two decimal places and final answers to the nearest dollar amount.)
Transactions
Units
Unit Cost
a.
Inventory, Beginning
3,000
$18
For the year:
b.
Purchase, April 11
8,000
16
c.
Purchase, June 1
7,000
19
d.
Sale, May 1 (sold for $46 per unit)
3,000
e.
Sale, July 3 (sold for $46 per unit)
6,600
f.
Operating expenses (excluding income tax expense), $213,000
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