Question

Teal Mountain Inc. had a beginning inventory of 98 units of Product RST at a cost of $9 per unit. During the year, purchases were: Feb. 20 557 units at $10 Aug. 12 410 units at $12 May 5 470 units at $11 Dec. 8 95 units at $13 Teal Mountain Inc. uses a periodic inventory system. Sales totaled 1,350 units.

Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. 150.) FIFO LIFO AVERAGE-COST The ending inventory $enter a dollar amount $enter a dollar amount $enter a dollar amount The cost of goods sold $enter a dollar amount $enter a dollar amount $enter a dollar amount

Answer 1

X fac units beginning inventory 20-Feb 05-May 12-Aug 08-Dec units 98 557 470 410 95 1,630 1,350 280 cost per unit $9 $ 10 $ 11 $ 12 $ 13 total cost $ 882 $ 5,570 $ 5,170 $4,920 $ 1,235 $ 17,777 units sold units in ending inventory The ending inventory The cost of goods sold FIFO $ 3,455 $ 14,322 LIFO $ 2,702 $ 15,075 AVERAGE-COST $3,054 $ 14,723

for formulas and calculations, refer to the image below -

se units units units cost per unit total cost =C3*D3 =C4*D4 =C5*D5 =C6*D6 =C7*D7 =SUM(E3:E7) beginning inventory 98 43516 557 43590 470 43689 410 43807 =SUM(C3:07) units sold 1350 units in ending inventory =C8-C9 IN LIFO The ending inventory The cost of goods sold FIFO =(95*13)+(185*12) =(98*9)+(182*10) =(98*9)+(557*10)+(470*11)+225*12) =(95*13)+(410*12)+(470*11)+(375*10) AVERAGE-COST =E8/08*c10 =E8/08*09

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