Question

LIFO METHOD:

Hurst Company's beginning inventory and purchases during the fiscal year ended December 31, 20X2 were as follows Date Event Units Unit Price Total Cost January 1, 20X2 January 12 February 28 June 29 August 31 October 29 November 30 December 21 bea. Invento 1st purchase 2nd purchase 3rd purchase 4th purhcase 5th purchase 6th purchase 7th purchase 1,500 10.00 15,000.00 500 S 11.50$ 5,750.00 600 14.50$ 8,700.00 1,200 15.00 $ 18,000.00 800 S 16.50$ 13,200.00 300 S 18.00$ 5,400.00 700 S 18.50$ 12,950.00 400 S 20.00$ 8,000.00 $87,000.00 6,000 There are 1,200 units of inventory on hand at December 31, 20X2 Required 1) Calculate the total amount to be assigned to the Cost of Goods Sold for the year ending 20X2 and the ending inventory on December 31 under each of the following periodic inventory methods: a) LIFO (round calculations to 2 decimal places) 1b) LIFO method: Cost of Goods Sold Cost of Ending Invent ory Date Event Unitsx Unit Price Total Units x Unit Price Total January 1, 20X2 Beg. Inventory

Answer 1

The weighted average method has been used to calculate the COGS Unit price.