Periodic Inventory Systems
Tres Chic Uses a Periodic Inventory System

Essay

Periodic inventory systems
Tres Chic uses a periodic inventory system. The beginning inventory of a particular product, and the purchases during the current year, were as follows:
At December 31, the ending inventory of this product consisted of 850 units.
Determine the cost of the year-end inventory and the cost of goods sold for this product under each of the following methods of inventory valuation (Rounded):
$\begin{array}{|c|l|l|c|}\hline \text { Jan } 1 & \text { Beginning inventory. } & 1,000 \text { units } @ \$ 14.00= & \$ 14,000 \\\hline \text { Mar } 9 & \text { Purchase } & 1,050 \text { units } @ \$ 1450= & 15,225 \\\hline \text { Aug } 11 & \text { Purchase } & 950 \text { units } @ \$ 15.00= & 14.250 \\\hline \text { Dec } 23 & \text { Purchase } & 500 \text { units@\$15.75= } & 7.875 \\\hline & \text { Total available for sale in year } & \overline{3.500} \text { units } & \$ 51.350 \\\hline\end{array}$
$$\begin{array} { | l | l | l | l | } \hline & & \begin{array} { c } \text { Inventory at } \\\text { Dec. } 31\end{array} & \begin{array} { c } \text { Cost of } \\\text { Goods Sold }\end{array} \\\hline \text { (a) } & \text { Average cost } & \$ \underline{\quad\quad}& \$\underline{\quad\quad} \\\hline \text { (b) } & \text { First-in, first-out } & \$\underline{\quad\quad} & \$\underline{\quad\quad} \\\hline \text { (c) } & \text { Last in, first-out } & \$\underline{\quad\quad} & \$ \underline{\quad\quad}\\ \hline\end{array}$$