Question

IL Inventories NAME cords for its retail 15 ning inventory A) Scout Corporation's inventory records for its retail division show the following on May May 1 Beginning inventory 10units @ $160 - $1,600 15 Purchase Sunits @ $161 - 805 26 Purchase 14units @ $170 - 2,380 At May 31, 11 of these units are on hand. REQUIRED: Compute cost of goods sold and ending inventory under each of the following: a) Average cost. b) FIFO c) LIFO

Answer 1

Given data - total units available for sale = 10+5+14 = 29 unito unit on hand = 1 units units sold = 29-11 units = 18 units a) Avesage cost : weighted average cost pee wil = total cost of goods oubl for sale total unité = 1600+805+2380 $4785 a za 29 units = $165 per unit → cost of goods sold = 18 units X 165 = $2970 → Ending inventory = 11 units X 165 a $1815 b) FIFO method: cost of goods sold = [(10x160) +(5X161)+ 8x170)] = $2015 - Ending inventory = 11x$170 = $1870 c) LIFO method: → cost of goods sold = (4x170) +(4x161)] = $ 3024. → Ending inventory = {10x160) + (1x 161)] = $1761