Question

Spotter Corporation reported the following for June in its periodic inventory records. Date Description Units Unit Cost Total Cost June 1 Beginning 24 $ 11.20 $ 268.80 11 Purchase 40 12.20 488.00 24 Purchase 36 14.20 511.20 30 Ending 40 Required: Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost methods

Answer 1

	FIFO	LIFO	Weighted Average
Cost of Goods Sold	$                708	$             804	$                 761
Ending Inventory	$                560	$             464	$                 507

Alternate answer using 2 decimal place rounding off.

	FIFO	LIFO	Weighted Average
Cost of Goods Sold	$          708.00	$       804.00	$           760.80
Ending Inventory	$          560.00	$       464.00	$           507.20

Working

	Units	Cost per unit	value
Beginning Inventory	24	$          11.20	$           268.80
Purchases
11-Jun	40	$          12.20	$           488.00
24-Jun	36	$          14.20	$           511.20
	100		$       1,268.00

Weighted Average Cost
Units	(A)	100
Total Cost	(B)	$    1,268.00
Average Cost	(C=B/A)	$          12.68

FIFO
Total Units Avalable for sale		100
Units Sold		60
Ending Inventory Units		40
Valuation
Ending Inventory	36	@	$             14.20	$           511.20
	4	@	$             12.20	$              48.80
Value Of Ending Inventory				$           560.00
Cost of Goods sold	(1268-560)			$           708.00

LIFO
Total Units Avalable for sale		100
Units Sold		60
Ending Inventory Units		40
Valuation
Ending Inventory	24	@	$             11.20	$           268.80
	16	@	$             12.20	$           195.20
Value Of Ending Inventory				$           464.00
Cost of Goods sold	(1268-464)			$           804.00

Weighted Average
Total Units Avalable for sale		100
Units Sold		60
Ending Inventory Units		40
Valuation
Ending Inventory	40	@	$             12.68	$           507.20
Value Of Ending Inventory				$           507.20
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$           760.80