Question

1. Periodic inventory by three methods; cost of goods sold I can not figure out how to work (LIFO) out is there a simple way to work out these problems I am having a hard time with this chapter.

2. The units of an item available for sale during the year were as follows:

Jan. 1	Inventory	50 units at $90
Mar. 10	Purchase	60 units at $102
Aug. 30	Purchase	30 units at $108
Dec. 12	Purchase	60 units at $110

3. There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

4. Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

Cost of Ending Inventory and Cost of Goods Sold
Inventory Method	Ending Inventory	Cost of Goods Sold
First-in, first-out (FIFO)	$	$
Last-in, first-out (LIFO)
Weighted average cost

Answer 1

	FIFO
		Cost of goods available for sale			Cost of Goods Sold			Ending Balance
Date	Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
Jan-01	Beginning Inventory	50	$                90.00	$             4,500.00	50	$           90.00	$        4,500.00
Mar-10	Purchase	60	$              102.00	$             6,120.00	60	$         102.00	$        6,120.00
Aug-30	Purchase	30	$              108.00	$             3,240.00	10	$         108.00	$        1,080.00	20	$   108.00	$      2,160.00
Dec-12	Purchase	60	$              110.00	$             6,600.00				60	$   110.00	$      6,600.00
	Total	200		$          20,460.00	120		$     11,700.00	80		$      8,760.00
	LIFO
		Cost of goods available for sale			Cost of Goods Sold			Ending Balance
Date	Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
Jan-01	Beginning Inventory	50	$                90.00	$             4,500.00				50	$     90.00	$      4,500.00
Mar-10	Purchase	60	$              102.00	$             6,120.00	30	$         102.00	$        3,060.00	30	$   102.00	$      3,060.00
Aug-30	Purchase	30	$              108.00	$             3,240.00	30	$         108.00	$        3,240.00
Dec-12	Purchase	60	$              110.00	$             6,600.00	60	$         110.00	$        6,600.00
	Total	200		$          20,460.00	120		$     12,900.00	80		$      7,560.00
	W. Avg
		Cost of goods available for sale			Cost of Goods Sold			Ending Balance
Date	Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
Jan-01	Beginning Inventory	50	$                90.00	$             4,500.00
Mar-10	Purchase	60	$              102.00	$             6,120.00
Aug-30	Purchase	30	$              108.00	$             3,240.00
Dec-12	Purchase	60	$              110.00	$             6,600.00
	Total	200	$              102.30	$          20,460.00	120	$         102.30	$     12,276.00	80	$   102.30	$      8,184.00