Question

The Lippert Company uses the periodic inventory system. The following July data are for an item in loppers inventory:

July 1 Beginning Inventory 100 units@ $8 per unit

10 Purchased 120 units@ $9 per unit

15 sold 130 units@

26 Purchased 95 units@ $10 per unit

Calculate the cost of goods sole for July and ending inventory at July 31 using (a) first-in, first out (b) last-in, first out and (c) the weighted- average cost methods. Round your final answers to the nearest dollar.

A. first-in, first-out

Ending Inventory $-

Cost of goods sold $-

B. Last-in, first-out

ending inventory $-

cost of goods sold $-

C. Weighted- average cost

ending inventory. $-

cost of goods sold $-

Answer 1

Let me know if you need any clarification..

Answer A. using FIFO
		Purchase
	Date	Qty	rate	value
	July -1 beginning	100	8	800
	July -10 pur	120	9	1080
	July -15 sale	-130
	July 26   Purchase	95	10	950
	closing inventory	185
				2830
	Therefore cost of goods sold		100*8+30*9
	Therefore cost of goods sold		1070
	ending inventory 2830-1070		1760
Answer B. using LIFO
	Therefore cost of goods sold		95*10+35*9		35
	Therefore cost of goods sold		1265
	ending inventory 2830-1265		1565
Answer C. using weighted average
	Weighted average rate = 2830/(100+120+95)				8.98
	Cost of goods sold = 130*8.98				1,168
	ending inventory = 2830-1168				1,662