Question

Computing Cost of Sales and Ending Inventory
Stocken Company has the following financial records for the current period.

	Units	Unit Cost
Beginning Inventory	100	$ 46
Purchases: #1	650	42
#2	550	38
#3	200	36

Ending inventory is 350 units. Compute the ending inventory and the cost of goods sold for the current period using (a) first-in, first out, (b) average cost, and (c) last-in, first out.

(a) First-in, first-out
Ending inventory	$Answer
Cost of goods sold	$Answer
(b) Average cost
Ending inventory	$Answer
Cost of goods sold	$Answer
(c) Last-in, first-out
Ending inventory	$Answer
Cost of goods sold	$Answer

Answer 1

• All working forms part of the answer
• Answers

a) First-in, first-out
Ending inventory	$12900
Cost of goods sold	$47100
(b) Average cost
Ending inventory	$ 14000
Cost of goods sold	$ 46000
(c) Last-in, first-out
Ending inventory	$15100
Cost of goods sold	$ 44900

• Workings

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	100	$                46.00	$                        4,600.00	100	$         46.00	$           4,600.00	0	$        46.00	$                         -
Purchases:
#1	650	$                42.00	$                      27,300.00	650	$         42.00	$        27,300.00	0	$        42.00	$                         -
#2	550	$                38.00	$                      20,900.00	400	$         38.00	$        15,200.00	150	$        38.00	$            5,700.00
#3	200	$                36.00	$                        7,200.00	0	$         36.00	$                        -	200	$        36.00	$            7,200.00
TOTAL	1500		$                      60,000.00	1150		$        47,100.00	350		$          12,900.00

LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	100	$                46.00	$                        4,600.00	0	$         46.00	$                        -	100	$        46.00	$            4,600.00
Purchases:	0	$                       -	$                                     -
#1	650	$                42.00	$                      27,300.00	400	$         42.00	$        16,800.00	250	$        42.00	$          10,500.00
#2	550	$                38.00	$                      20,900.00	550	$         38.00	$        20,900.00	0	$        38.00	$                         -
#3	200	$                36.00	$                        7,200.00	200	$         36.00	$           7,200.00	0	$        36.00	$                         -
TOTAL	1500		$                      60,000.00	1150		$        44,900.00	350		$          15,100.00

Weighted Average (Periodic)	Units	Cost per unit	Total
Beginning Inventory	100	$    46.00	$       4,600.00
Purchases:
#1	650	$    42.00	$     27,300.00
#2	550	$    38.00	$     20,900.00
#3	200	$    36.00	$       7,200.00
Total Purchases	1400		$     55,400.00
Goods Available for Sales	1500		$     60,000.00
Weighted Average cost per unit		$ 40.000
Cost of Goods Sold	1150	$ 40.000	$     46,000.00
Ending Inventory	350	$ 40.000	$     14,000.00