Question

Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units 1,890 Unit Cost $5 Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year 5,100 2,820 4,190 8 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.) ® Answer is complete but not entirely correct. FIFO LIFO Average Cost $ 32,010 Ⓡ$ 35,700 Ⓡ$ 20,238 $ 45,150 $ 63,360 $ 47,382 % Ending inventory Cost of goods sold

Answer 1

Answers

• Periodic Methods

	FIFO	LIFO	Weighted Average
Ending Inventory	$    32,150.00	$            25,550.00	$               28,911.00
Cost of Goods Sold	$    35,560.00	$            42,160.00	$               38,778.00

• Workings

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	1890	$                   5.00	$                        9,450.00	1890	$                 5.00	$                 9,450.00	0	$                   5.00	$                         -
Purchases:
21-Mar	5100	$                   7.00	$                      35,700.00	3730	$                 7.00	$               26,110.00	1370	$                   7.00	$            9,590.00
01-Aug	2820	$                   8.00	$                      22,560.00	0	$                 8.00	$                              -	2820	$                   8.00	$          22,560.00
TOTAL	9810		$                      67,710.00	5620		$               35,560.00	4190		$          32,150.00
LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	1890	$                   5.00	$                        9,450.00	0	$                 5.00	$                              -	1890	$                   5.00	$            9,450.00
Purchases:
21-Mar	5100	$                   7.00	$                      35,700.00	2800	$                 7.00	$               19,600.00	2300	$                   7.00	$          16,100.00
01-Aug	2820	$                   8.00	$                      22,560.00	2820	$                 8.00	$               22,560.00	0	$                   8.00	$                         -
TOTAL	9810		$                      67,710.00	5620		$               42,160.00	4190		$          25,550.00
Average Method	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	1890	$                   5.00	$                        9,450.00
Purchases:
21-Mar	5100	$                   7.00	$                      35,700.00
01-Aug	2820	$                   8.00	$                      22,560.00
TOTAL	9810	$                6.90 [$ 67710 / 9810 units]	$                      67,710.00	5620	$             6.9000	$               38,778.00	4190	$              6.9000	$          28,911.00