Question

Periodic inventory by three methods; cost of goods sold The units of an item available for sale during the year were as follows:

Jan. 1 Inventory 30 units at $114

Mar. 10 Purchase 60 units at $126

Aug. 30 Purchase 10 units at $134

Dec. 12 Purchase 100 units at $138

There are 40 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

Cost of Ending Inventory and Cost of Goods

Sold Inventory Method. Ending Inventory Cost of Goods Sold

First-in, first-out (FIFO) $   $

Last-in, first-out (LIFO). $ $

Weighted average cost   $ $

Answer 1

Cost of goods available for Sale
Date	Units	Cost per unit	Total Cost
Jan.1	30	114	3,420
Mar.10	60	126	7,560
Aug.30	10	134	1,340
Dec.12	100	138	13,800
Cost of goods available for Sale	200		26,120
FIFO METHOD
Ending Inventory
Date	Units	Cost per unit	Total Cost
Dec.12	40	138	5,520
Ending Inventory	40		5,520
Cost of Goods Sold
Particuars			Amount
Cost of goods available for sale			$26,120
Less:Ending Inventory			$5,520
Cost of goods sold			$20,600
Proof of cost of goods sold
Date	Units	Cost per unit	Total Cost
Jan.1	30	114	3,420
Mar.10	60	126	7,560
Aug.30	10	134	1,340
Dec.12	60	138	8,280
	160		$20,600
LIFO METHOD
Ending Inventory
Date	Units	Cost per unit	Total Cost
Jan.1	30	114	3,420
Mar.10	10	126	1,260
Ending Inventory	40		4,680
Cost of Goods Sold
Particuars			Amount
Cost of goods available for sale			$26,120
Less:Ending Inventory			$4,680
Cost of goods sold			$21,440
Proof of cost of goods sold
Date	Units	Cost per unit	Total Cost
Mar.10	50	126	6,300
Aug.30	10	134	1,340
Dec.12	100	138	13,800
	160		$21,440

Weighted-Average Cost Method
Particulars	Computation	Amount($)
Weighted Average Cost of Inventory Per Unit	$26,120/200 units	130.6
Ending Inventory	40 units @ 130.6	5,224
Cost of Goods Sold (for better knowlwdge)	(Total cost - cost of closing stock) ($26,120 - $5224) for 160 units	20,896