Question

Hansen Company uses the per Units Jan 1 Jan 20 July 25 Oct 20 Beginning inventory Purchase Purchase Purchase Totals enodic inventory system and had the following inventory information able Unit Cost Total cos 100 $3.00 $300 500 $4.00 $2000 100 $5.00 $500 300 $6.00 $1800 S1600 1000 A physical count of inventory revealed 350 a count of inventory revealed 350 units on hand at the end of the 26. If the company uses the FIFO method, COGS for the year is a. $2,990 b. $3,300 c. $2,050 d. $1,300 e. $2,550 27. If the company uses the FIFO method, Ending Inventory at the end of the year is a. $1,610 b. $3,300 c. $2,050 d. $1,300 e. $2,550 28. If the company uses the LIFO method, COGS for the year is: a. $2.990 b. $3,300 c. $2,050 d. $1,300 e. $2,550 29. If the company uses the LIFO method, Ending Inventory at the end of the years a. $1,610. b. $3,300 c. $2,050 d. $1,300 e. $2,550 the company uses the Average Cost method, COGS for the year is: a $2,990 b. $3,300 c. $2,050 d. $1,610 e $2,550 31. If the company uses the Average Cost method, Ending Inventory at the end of the year is a $2,990 b. $3,300 c. $2,050 d. $1,300 e. $1,610

Answer 1

1) FIFO Cost of goods sold = (300+2000+50*5) = 2550

So answer is e) $2550

2) FIFO ending inventory = 4600-2550 = 2050

So answer is c) $2050

3) LIFO cost of goods sold = (1800+500+250*4) = 3300

So answer is b) $3300

4) LIFO ending inventory = 4600-3300 = 1300

So answer is d) $1300

5) Average cost of goods sold = 4600/1000*650 = 2990

So answer is a) $2990

6) Average ending inventory = 4600-2990 = 1610

So answer is e) $1610