Question

Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Unit Cost Units 1,840 $5 Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year 7 5, 120 2,830 4,050 ? Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.) FIFO LIFO Average Cost Ending inventory Cost of goods sold

Answer 1

	Units	Unit cost	Total cost
Beginning inventory	1840	5	9200
Purchases:
March 21	5120	7	35840
August 1	2830	8	22640
Total	9790		67680
Average cost	6.91	=67680/9790
FIFO:
Ending inventory	31180	=(2830*8)+(4050-2830)*7
Cost of goods sold	36500	=67680-31180
LIFO:
Ending inventory	24670	=(1840*5)+(4050-1840)*7
Cost of goods sold	43010	=67680-24670
Average cost:
Ending inventory	27986	=4050*6.91
Cost of goods sold	39694 or 39663	=67680-27986