Question

The accounting records of Sheridan Company show the following data. Beginning inventory Purchases Sales 3,000 units at $6 9,000 units at $8 10,400 units at $11 Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost $ per unit e Textbook and Media List of Accounts Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO Average-cost Cost of goods sold $

Answer 1

Answers

• Average unit cost = $ 7.5000 [ $ 90000 / 12000 units]

	Cost of Goods available for sale
	Units	Cost/unit	COG for sale
Beginning Inventory	3000	$                   6.00	$                      18,000.00
Purchases	9000	$                   8.00	$                      72,000.00
TOTAL	12000	$              7.5000	$                      90,000.00

• Cost of Goods Sold

	FIFO	LIFO	Weighted Average
Cost of Goods Sold	$    77,200.00	$            80,400.00	$               78,000.00 [10400 units x $ 7.50]

• 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	3000	$                   6.00	$                      18,000.00	3000	$                 6.00	$               18,000.00	0	$                   6.00	$                         -
Purchases	9000	$                   8.00	$                      72,000.00	7400	$                 8.00	$               59,200.00	1600	$                   8.00	$          12,800.00
TOTAL	12000		$                      90,000.00	10400		$               77,200.00	1600		$          12,800.00
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	3000	$                   6.00	$                      18,000.00	1400	$                 6.00	$                 8,400.00	1600	$                   6.00	$            9,600.00
Purchases	9000	$                   8.00	$                      72,000.00	9000	$                 8.00	$               72,000.00	0	$                   8.00	$                         -
TOTAL	12000		$                      90,000.00	10400		$               80,400.00	1600		$            9,600.00