Question

Inventory Costing Methods VanderMeer Inc. reported the following information for the month of February: Inventory, February 1 57 units @ $18 Purchase: February 7 51 units @ $20 February 18 67 units @ $21 February 27 40 units @ $23 During February, VanderMeer sold 138 units. The company uses a periodic inventory system. Required: What is the value of ending inventory and cost of goods sold for February under the following assumptions. Assumption Cost of Goods Sold Ending Inventory 1. Of the 138 units sold, 48 cost $18, 36 cost $20, 50 cost $21, and 4 cost $23. 2,726 $ 1,647 2. FIFO х $ х 3. LIFO DUO $ 4. Weighted average method (Round average unit cost to the nearest cent, and round all other calculations and your final answers to the nearest dollar.)

Answer 1

Date	Units	Price	Total Cost
February 1	57	$18	1026
February 7	51	$20	1020
February 18	67	$21	1407
February 27	40	$23	920
Total	215		4373

• FIFO method:- In FIFO method inventory purchsed first are sold first.

Cost of Goods Sold= (57*18)+(51*20)+(30*21)=2676

Ending Inventory=$4373-$2676=$1697

• LIFO Method:-In LIFO method inventory purchsed last are sold first.

Cost of Goods Sold= (31*20)+(67*21)+(40*23)=2947

Ending Inventory=$4373-$2947=$1426

• Average Cost= In this method Inventory is valued at average cost.

=Total Cost/Units

=4373/215

=$20.34

Cost of goods sold=138*20.34=$2807

Ending Inventory=$4373-$2807=$1566

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