Question

Leven Company began operations on December 1, 2019. The following information is available for the company’s merchandise inventory. A physical inventory taken on March 31, 2020, showed 3,000 units available. Leven uses a periodic inventory system.

Date		Units	Unit Cost
January 1, 2020 (beginning inventory)		1,600	$9.00
Purchases:	January 5, 2020	3,000	10.00
	January 25, 2020	2,400	10.50
	February 16, 2020	1,200	12.00
	March 26, 2020	1,800	13.00

Required

a. Compute ending inventory and cost of goods sold for the quarter ended March 31, 2020, using:

	Ending Inventory	COGS
1. Average cost method.	Answer	Answer
2. FIFO method.	Answer	Answer
3. LIFO method.	Answer	Answer

Answer 1

Answer: ① Average cost method: weighted Aug. cost per unit =' (1600 x 49).+ (3000x +)+2400 x 10-5)+(1200x $12)+ (1800x413) 1600 + 3000 + 2400 +1200 + 1800 $ 107400 10000 units = $ 10.74. . cost of goods sold = (10000 - 2000) * $10.74 = 75180 Ending Inventory = 3000 x $10.74 = $ 32,220. fifo nethed Cost of goods sold (1600* $9) + (3000 * $10) +(2400x10.) = $69600 = $37800 Ending Inventory = (1200x $12) +(1800* $13) ② Lifo method Cost of good sold = (18x0x $13) +(1200* $12) +(2400 * *10*5)+(1600x419) = $79000 Ending Iwwertony = (1600x +7) + (1400x $ 10) = $28 400