Question

Inventory Costing Methods Carrington Inc. reported the following information for the month of February: Inventory, February 1 63 units @ $26 Purchase: February 7 55 units @ $27 February 18 60 units @ $29 February 27 45 units @ $31 During February, Carrington sold 142 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 142 units sold, 53 cost $26, 39 cost $27, 45 cost $29, and 5 cost $31. $ 2. FIFO $ 3. LIFO $ $ 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

	Units	Cost per unit	Total cost
Inventory, February	63	26	1638
Purchase:
February 7	55	27	1485
February 18	60	29	1740
February 27	45	31	1395
Goods available for sale	223		6258

Average unit cost = Cost of goods available for sale / Units of goods available for sale = 6258 / 223 =

28.06

Assumption	Cost of goods sold	Ending inventory
	Calculation	Answer	Calculation	Answer
1. Of the 142 units sold, 53 cost $26, 39 Cost $27, 45 cost $29, 5 cost $31.	[ 53*26 + 39*27 + 45*29 + 5*31 ]	3891	[ 6258 - 3891 ]	2367
2. FIFO	[ 63*26 + 55*27 + 2*29 ]	3181	[ 6258 - 3181 ]	3077
3. LIFO	[ 45*31 + 60*29 + 15*27 ]	3540	[ 6258 - 3540 ]	2718
4. Weighted average method	[ 142*28.06 ]	3985	[ 6258 - 3985 ]	2273