Question

inventory by three methods

Inventory by Three Methods; Cost of Goods Sold The units of an item available for sale during the year were as follows: Jan. 1 24 units at $1,800 Inventory Purchase May 15 27 units at $1,950 Aug. 7 Purchase 12 units at $2,040 Nov. 20 Purchase 17 units at $2,100 There are 20 units of the item in the physical inventory at December 31. Determine the cost of ending inventory and the cost of goods sold by three methods, presenting your answers in the following form: Round your final answers to the nearest dollar. Cost Inventory Method Ending Inventory Cost of Goods Sold a. First-in, first-out method b. Last-In, first-out method C. Weighted average cost method Check My Work

Answer 1

А B D Ε 2 3 24 27 12 1-Jan Beginning inventory 15-May Purchases 7-Aug Purchases 20-Nov Purchases Cost of goods available for sale Average cost Price per unit Units 43200 1800 52650 1950 24480 2040 35700 2100 156030 1950 Less units sold Ending inventory 171 801 601 201 39000 (20*1950) Per unit 12 Units 13 Ending inventory Average cost FIFO 20 Nov purchases 7 aug purchases Total LIFO 1 jan purchases Total 2100 2040 357001 6120 14 15 41820 16 17 20 1800 36000 8. 19 Total 36000

22 23 Average FIFO 156030 39000 117030 Cost of goods available for sale Ending inventory Cost of goods sold LIFO 156030 40800 115230 24 Less 25 156030 360001 120030