Question

Zippy Shoe Co. uses a periodic inventory system. Zippy purchased 405 pairs of shoes at $68 each in June, 970 pairs in August at $70 each, and 620 pairs in December at $73 each. Zippy sold 1,890 pairs of shoes during the year.
Zippy Shoe Co. uses a periodic inventory system. Zippy purchased 405 pairs of shoes at $68 each in June, 970 pairs in August at $70 each, and 620 pairs in December at $73 each. Zippy sold 1,890 pairs of shoes during the year. Required: Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods. a. FIFO b.LIFO c. Weighted Average Complete this question by entering your answers in the tabs below. Required A Required B Required C FIFO Cost of Goods Sold Ending Inventory < Required A Required B

Answer 1

	Unit	Unit Cost	Total Cost
Purchase 1	405	68	27540
Purchase 2	970	70	67900
Purchase 3	620	73	45260
	1995		140700

a) Calculate following : FIFO

Cost of goods sold = 27540+67900+515*73 = 133035

Ending inventory = 105*73 = 7665

b) Calculate following : LIFO

Cost of goods sold = 45260+67900+300*68 = 133560

Ending inventory = 105*68 = 7140

c) Calculate following: Average cost

Cost of goods sold = 70.53*1890 = 133302

Ending inventory = 140700-133302 = 7398