Question

Penn 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 2,600 Unit Cost $8.00 Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year 5,600 3,600 5,800 9.00 4.00 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. (Do not round "Average cost per unit" and round your final answers to nearest whole dollar amount.) FIFO LIFO Average Cost Ending inventory Cost of goods sold

Answer 1

Cost of Ending inventory Cost of Goods sold FIFO 34200 51400 LIFO 49600 36000 Average Cost 42075 43525 Periodic : FIFO Goods Purchasd Cost of Goods Sold Inventory Balance cost of Goods Cost of Goods Cost Per Ending # of Units Cost Per Unit Available for sales # of Units sold Cost Per Unit Sold # of Units Unit Inventory Beginning inventory 2600 8 20800 2600 8 20800 8 Purchases Mar-21 5600 9 50400 3400 9 30600 2200 9 19800 Aug-01 3600 4 14400 3600 4 14400 Totals 11800 85600 6000 51400 5800 34200

0 Periodic : LIFO Goods Purchasd as Purchasd Cost of Goods Sold Inventory Balance cost of Goods Cost of Goods Cost Per Ending # of Units Cost Per Unit Available for sales # of Units sold Cost Per Unit Sold # of Units Unit Inventory Beginning inventory 2600 8 20800 8 0 2600 8 20800 Purchases Mar-21 5600 9 504001 2400 9 21600 3200 9 28800 Aug-01 3600 4 14400 3600 4 14400 04 Totals 11800 85600 6000 36000 5800 49600 Periodic: Weighted Average Goods Purchasd Cost of Goods Sold Inventory Balance cost of Goods # of Units Cost of Cost Per Ending # of Units Cost Per Unit Cost Per Unit # of Units Available for sales sold Goods Sold Unit Inventory 8 20800 Beginning inventory 2600 Purchases Mar-21 5600 Aug-01 3600 Totals 118001 4 7.254 50400 14400 85600 6000 7.254 43525 5800 7.254 42075