Question

Spotter Corporation reported the following for June in its periodic inventory records. Units 17 Date June 1 11 24 30 Description Beginning Purchase Purchase Ending Unit Cost $10.20 11.20 13.20 Total Cost $173.40 302.40 409.20 27 31 35 Required: 1. Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. (Round your intermediate calculations and final answers to 2 decimal places.) Cost of Ending Cost of Goods Inventory Sold FIFO LIFO Weighted Average Cost

Answer 1

	Cost of ending inventory	Cost of goods sold
FIFO	$454	$431
LIFO	$375	$510
Weighted average cost	$413	$472

FIFO

In FIFO units are sold first from the oldest purchases then move towards the newest purchase

Total units sold = total units available for sale – ending inventory = (17+27+31)-35 = 40

Cost of ending inventory = (31*13.20)+(4*11.20) =$454

Cost of goods sold = (17*10.20)+(23*11.20) = $431

LIFO

In LIFO units are sold first from the newest purchases then move towards the oldest purchase

Total units sold = total units available for sale – ending inventory = (17+27+31)-35 = 40

Cost of ending inventory = (17*10.20)+(18*11.20) =$375

Cost of goods sold = (9*11.20)+(31*13.20) = $510

Weighted average cost

Weighted average cost per unit = total cost of goods available for sale / total units available for sale = ((17*10.20)+(27*11.20)+(31*13.20))/(17+27+31) = $11.80

Cost of ending inventory = 35*11.80 =$413

Cost of goods sold = 40*11.80 = $472