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 @ $11 Sept. 10 Purchase 600 units @ $13 Sept. 20 Sales 630 units @ $22 Sept. 25 Purchase 1000 units at $14 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 $ $ $ Ending

Answer 1

Answer:

Avg Cost 7686 FIFO LIFO Cost of goods sold Ending inventory 8130 7390 18070 18514 18810

Explanation:

Perpetual FIFO Ending Inventory Unit Cost Goods Purchsed Cost of Goods sold Unit Cost Total Cost units Unit Cost Total Cost units Date Total Cost units Sep-01 Sep-10 400 11 4400 13 4400 11 600 7800 400 600 13 7800 1000 12200 Sep-20 400 11 4400 370 13 4810 2990 230 13 7390 4810 630 370 Sep-25 13 1000 14 14000 370 4810 1000 14 14000 Total 18810 7390 1370 830

Perpetual LIFO Goods Purchsed Cost of Goods sold Ending Inventory Unit Cost Unit Cost Total Cost units Unit Cost Total Cost Total Cost Date units units Sep-01 400 11 4400 7800 4400 Sep-10 600 13 400 11 7800 600 13 12200 1000 Sep-20 4070 600 13 7800 370 11 330 30 11 8130 630 370 4070 14000 4070 Sep-25 1000 14 370 11 1000 14 14000 Total 8130 18070 630 1370

Average Inventory Cost method Ending Inventory Unit Cost Goods Purchsed Cost of Goods sold Unit Cost Total Cost Unit Cost Total Cost Date units Total Cost units units Sep-01 Sep-10 400 11.00 4400 600 13 7800 400 11.00 4400 13.00 600 7800 12.20 12200 1000 Sep-20 7686 630 12.20 370 12.20 4514 Sep-25 1000 14 14000 370 12.20 4514 1000 14.00 14000 Total 18514 7686 1370 630 13.51