I need the answer to an accounting problem using the periodic method.?

Question

I need the answer to an accounting problem.

The units of Product YY2 available for sale during the year were as follows.

Apr 1 Inventory 16 units @ $30
Jun 16 Purchase 30 units @ $33
Sep28 Purchase 45 units @ $37

There are 17 units of the product in the physical inventory at March 31. The
Periodic inventory system is used. Determine the cost of merchandise sold
By (a) FIFO, (b) LIFO, and (c) average cost methods.

I need to understand the periodic method, so please explain in detail how
You arrived at the answer.

Manuel Ramirez
University of Houston Student

Answer 1

Apr 1 Inventory 16 units @ $30
Jun 16 Purchase 30 units @ $33
Sep28 Purchase 45 units @ $37
Total 91 units available for sale costing $3,135
Sold 74 units
Bal. 17 units

(a) FIFO
Under FIFO you assume that the units sold came from the earliest batches, so the remaining 17 units must have come from the latest batch, so all 17 must be from the Sep 28 batch, & the ending inventory is 17 @ $37 = $629. COGS is $3,135 - $629 = $2,506.

(b) LIFO
Under LIFO you assume that the units sold came from the latest batches, so the remaining 17 units must have come from the earliest batches : so 16 came from the opening inventory @ $30 plus 1 unit from the Jun 16 batch @ $33, & the ending inventory is $513. COGS is $3,135 - $513 = $2,622.

(c) Weighted average
91 units were available for sale, costing a total of $3,135, or $34.45 each unit. You sold 74 units, so the COGS is 74 x $34.45 = $2,549.30.

For an explanation of the periodic vs perpetual systems, pls click on the link.

Answer 2

Answer to 9. Is not an acceptable method under IFRS is LIFO