Question

A company began August with 75 units of inventory that cost $20 each. Assume a perpetual inventory system. During August, the company had the following transactions: E (Click the icon to view the transactions.) Determine the company's cost of goods sold for August using each of the inventory costing methods indicated. (For weighted-average calculations, round per unit costs to the nearest cent and all other amounts to the nearest dollar.) i Data Table The cost of goods sold amount for August using FIFO inventory costing is $ . The cost of goods sold amount for August using LIFO inventory costing is $ The cost of goods sold amount for August using weighted average inventory costing is $ . Unit Cost Units 65 70 Unit Sales Price $ 59 $ 28 Aug. 3 Sale 8 Purchase 21 Sale 30 Purchase 75 Print Print Done Done

Answer 1

Answer- Cost of goods sold-

FIFO =$2900

LIFO= $2980

Weighted Average Cost Method= $2920

Explanation-

FIFO METHOD
	Goods purchased		Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
Aug-01						75	20	1500
Aug-03			65	20	1300	10	20	200
Aug-08	70	28				10	20	200
						70	28	1960
Aug-21			10	20	200	20	28	560
			50	28	1400
Aug-30	25	45				20	28	560
						25	45	1125
Totals			125		2900	45		1685
LIFO METHOD
	Goods purchased		Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
Aug-01						75	20	1500
Aug-03			65	20	1300	10	20	200
Aug-08	70	28				10	20	200
						70	28	1960
Aug-21			60	28	1680	10	20	200
						10	28	280
Aug-30	25	45				10	20	200
						10	28	280
						25	45	1125
Totals			125		2980	45		1605

AVERAGE COST METHOD
	Goods purchased		Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	# of units sold	Cost per unit	Cost of goods sold	# of units	Cost per unit	Inventory balance
Aug-01						75	20	1500
Aug-03			65	20	1300	10	20	200
Aug-08	70	28				10	20	200
						70	28	1960
Average Cost						80	27	2160
Aug-21			60	27	1620	20	27	540
Aug-30	25	45				20	27	540
						25	45	1125
Average Cost						45	37	1665
Totals			125		2920	45		1665