Question

Zippy Shoe Co. uses a periodic inventory system. Zippy purchased 435 pairs of shoes at $65 each in June, 980 pairs in August at $67 each, and 640 pairs in December at $70 each. Zippy sold 1,895 pairs of shoes during the year. Required: Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods a. FIFO b. LIFO c. Weighted Average Complete this question by entering your answers in the tabs below. Required C Required A Required B FIFO Cost of Goods Sold Ending Inventory

Answer 1

Solution for Requirement Am B and C

	FIFO	LIFO	Weighted average
Cost of goods sold	$        127,535	$        128,335	$    127,933
Cost of Ending inventory	$          11,200	$          10,400	$      10,802

Working

	Units	Cost per unit	value
Beginning Balance			$ 0
Purchases
	435	$                   65.00	$ 28,275
	980	$                   67.00	$ 65,660
	640	$                   70.00	$ 44,800
			$ 0
Total	2055		$ 138,735

.

Average Cost of Inventory
Units	(A)	2055
Total Cost	(B)	$ 138,735
Average Cost	(C=B/A)	$                   67.51

.

FIFO
Total Units Available for sale		2055
Units Sold		1895
Closing Stock in Units		160
Valuation
Ending Inventory	160	@	$             70.00	$ 11,200
Value Of Ending Inventory				$            11,200
Cost of Goods sold				$         127,535
LIFO
Total Units Available for sale		2055
Units Sold		1895
Closing Stock in Units		160
Valuation
Ending Inventory	160	@	$             65.00	$ 10,400
Value Of Ending Inventory				$            10,400
Cost of Goods sold				$         128,335
Weighted Average method
Total Units Available for sale		2055
Units Sold		1895
Closing Stock in Units		160
Valuation
Ending Inventory	160	@	$             67.51	$            10,802
Value Of Ending Inventory				$            10,802
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$         127,933