Question

Inventory Costing Methods Tyler Company has the following information related to purchases and sales of one of its inventory items. Date Description Units Purchased at Cost Units Sold at Retail Sept. 1 Beginning inventory 400 units @ $14 Sept. 10 Purchase 600 units @ $15 Sept. 20 Sales 680 units @ $26 Sept. 25 Purchase 1000 units at $17 Assume the company uses a perpetual inventory system. Required: Calculate ending inventory and cost of goods sold using the FIFO, LIFO, and average cost methods. FIFO LIFO Avg Cost Cost of goods sold S Ending inventory

Answer 1

Cost of goods sold Ending inventory FIFO 9800 21800 LIFO Avg Cost 10120 9928 21480 21672

Explanation:

Date Sep-01 Sep-10 Perpetual FIFO Goods Purchsed End Cost of Goods sold Ending Inventory units Unit Cost Total Costunits Unit Cost Total Cost units Unit Cost Total Cost 400 14 5600 600 15 9 000 400 14 5600 600 15 9000 1000 146001 400 14 5600 320 15 4800 280 15 4200 680 9800 320 4800 1000 17 17000 320 15 4800 1000 17 17000 830 9800 1320 21800 Sep-20 Sep-25 Total

Date Sep-01 Sep-10 Perpetual LIFO Goods Purchsed Cost of Goods sold Ending Inventory units Unit Cost Total Cost units Unit Cost Total Cost units Unit Cost Total Cost 400 14 5600 600 15 9 000 400 14 5600 600 15 9000 1000 14600 600 15 9000 320 14 4480 80 14 1120 680 10120 320 4480 1000 17 17000 320 4480 1000 17 17000 10120 1320 21480 Sep-20 Sep-25 14 Total 680

Average Inventory Cost method Goods Purchsed Cost of Goods sold Date units Unit Cost Total Cost units Unit Cost Total Cost Sep-01 Sep-10 600 15 9 000 Ending Inventory units Unit Cost Total Cost 400 14.00 5600 400 14.00 5600 600 15.00 9000 1000 14.60 146001 320 14.60 4672 320 14.60 4672 1000 17.00 17000 1320 16.42 21672 680 15 9928 Sep-20 Sep-25 1000 17 | 17000 Total 680 9928