Question

The accounting records of Coronado Industries show the following data. Beginning inventory 2,840 units at $6 Purchases 7,980 units at $8 Sales 8,511 units at $11 Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method. (For calculation purposes, round average cost to 3 decimal places, e.g. 5.275. Round answers to 0 decimal places, e.g. 125.) FIFO LIFO Average-cost Cost of goods sold $

Answer 1

FIFO Method - Periodic Inventory

>> FIFO Method means first purchase goods sold first.

>> Cost of Goods Sold = ( 2,840 * $ 6 ) + ( 5671 * $ 8 )

>> Cost of Goods Sold = $ 62,408.

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LIFO Method - Periodic Inventory

>> LIFO Method means Latest purchase goods sold first.

>> Cost of Goods Sold = ( 7,980 * $ 8 ) + ( 531 * $ 6 )

>> Cost of Goods Sold = $ 67,026.

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Average cost Method - Periodic Inventory.

>> Cost of goods available for sale = ( 2,840 * $ 6 ) + ( 7,980 * $ 8 ) = $ 80,880.

>> Goods available for sale = 2,840 + 7,980 = 10,820.

>> Average cost per unit = $ 80,880 / 10,820 = $ 7.48.

>> Cost of Goods sold = 8,511 * $ 7.48 = $ 63,662