Question

Graham Company reports the following for the month of July.

Date			Explanation		Units			Unit Cost			Total Cost
July	1		Inventory		440			$5			$2,200
	12		Purchase		740			6			4,440
	23		Purchase		940			7			6,580

Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption (FIFO, LIFO, and Moving Average), using a perpetual inventory system. Assume a sale of 810 units occurred on July 15 for a selling price of $8 and a sale of 840 units on July 27 for $9. (Round average cost per unit to 3 decimal places, e.g. 5.253 and final answers to 0 decimal places, e.g. 2,520.)

Answer 1

Ending inventory:

FIFO : 3,290

LIFO : 2,550

Moving average: 3,108

Cost of goods sold:

FIFO : 9,930

LIFO : 10,670

Moving average: 10,112

Working note: