Question

Kingbird, Inc. reports the following for the month of June.

Date		Explanation		Units		Unit Cost			Total Cost
June 1		Inventory		400		$6			$2,400
12		Purchase		800		7			5,600
23		Purchase		600		8			4,800
30		Inventory		200

Assume a sale of 880 units occurred on June 15 for a selling price of $9 and a sale of 720 units on June 27 for $10.

Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. (Round average-cost per unit to 3 decimal places, e.g. 12.520 and final answer to 0 decimal places, e.g. 1,252.)

		FIFO		LIFO		Moving-Average Cost
The cost ending inventory		$		$		$
The cost of goods sold		$		$		$

Answer 1

		FIFO		LIFO		MOVIN-AVERAGE
The cost ending inventory	$	1,600	$	1,200	$	1,507
The cost of goods sold	$	11,200	$	11,600	$	11,293

Perpetual Method:

Computation of cost of Ending inventory and cost of goods sold using FIFO method is as follows:

Thus, Cost of Ending Inventory is $ 1,600

Cost of Goods Sold is $ 11,200

Computation of cost of Ending inventory and cost of goods sold using LIFO method is as follows:

Thus, Cost of Ending Inventory is $ 1,200

Cost of Goods Sold is $ 11,600

Computation of cost of Ending inventory and cost of goods sold using Moving Average method is as follows:

Date	Number of Units Purchased	Cost per Unit	Purchase Cost	Number of Units Sold	Cost per Unit	Cost of Goods Sold	Number of Units Balance	Cost per Unit	Inventory Balance
June 1							400	$   6.000	$    2,400
June 12	800	$      7.00	$    5,600				400	$   6.000	$    2,400
							800	$   7.000	$    5,600
							1200	$   6.667	$   8,000
June 15				880	$   6.667	$    5,867	320	$   6.667	$    2,133
June 23	600	$      8.00	$    4,800				320	$   6.667	$    2,133
							600	$   8.000	$    4,800
							920	$   7.536	$   6,933
June 27				720	$   7.536	$    5,426	200	$   7.536	$    1,507
Total	1400		$ 10,400	1600		$ 11,293	200		$   1,507

Thus, Cost of Ending Inventory is $ 1,507

Cost of Goods Sold is $ 11,293

Note: Average cost per unit is rounded off to 3 decimal places & final answer in 0 decimal places as per question requirement.