Question

The following data are available for Sellco for the fiscal year ended on January 31, 2020: Sales 1,600 units Beginning inventory 500 units @ $ 4 Purchases, in chronological order 600 units @ $ 5 800 units @ $ 6 500 units @ $ 8 Required: a. Calculate cost of goods sold and ending inventory under the cost flow assumptions, FIFO, LIFO and weighted average (using a periodic inventory system): (Round unit cost to 2 decimal places.)

Answer 1

	Unit	Unit Cost	Total Cost
Beginning inventory	500	4	2000
Purchase 1	600	5	3000
Purchase 2	800	6	4800
Purchase 3	500	8	4000
Total	2400		13800

Calculate cost of goods sold and ending inventory

	FIFO	LIFO	Weighted average
Cost of goods sold	(2000+3000+500*6) = 8000	(4000+4800+300*5) = 10300	13800/2400*1600 = 9200
Ending inventory	13800-8000 = 5800	13800-10300 = 3500	13800-9200 = 4600