Question

Spanner company is a retailer that uses the periodic inventory system. on march 1, it had 100 units of product m at a cost of $1590. On march 6 spanner purchased 200 units of m for $3600. on march 10 it purchased 125 units of m for $3000. on march 15 it sold 200 units of m for $6000. calculate the march cost of goods sold and ending inventory at march 31 using (A) first in-first out (B) last in first out and (C) the weighted-average cost method. round your final answer to the nearest dollar.

Answer 1

	FIFO	LIFO	Weighted Average
Ending Inventory	$      4,800.00	$              3,840.00	$                 4,336
Cost of Goods Sold	$      3,390.00	$              4,350.00	$                 3,854

• 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	$                15.90	$                        1,590.00	100	$               15.90	$                 1,590.00	0	$                 15.90	$                         -
Purchases:
06-Mar	200	$                18.00	$                        3,600.00	100	$               18.00	$                 1,800.00	100	$                 18.00	$            1,800.00
10-Mar	125	$                24.00	$                        3,000.00	0	$               24.00	$                              -	125	$                 24.00	$            3,000.00
TOTAL	425		$                        8,190.00	200		$                 3,390.00	225		$            4,800.00
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	$                15.90	$                        1,590.00	0	$               15.90	$                              -	100	$                 15.90	$            1,590.00
Purchases:
06-Mar	200	$                18.00	$                        3,600.00	75	$               18.00	$                 1,350.00	125	$                 18.00	$            2,250.00
10-Mar	125	$                24.00	$                        3,000.00	125	$               24.00	$                 3,000.00	0	$                 24.00	$                         -
TOTAL	425		$                        8,190.00	200		$                 4,350.00	225		$            3,840.00
Average Method	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	$                15.90	$                        1,590.00
Purchases:	0	$                       -	$                                     -
06-Mar	200	$                18.00	$                        3,600.00
10-Mar	125	$                24.00	$                        3,000.00
TOTAL	425	$              19.271	$                        8,190.00	200	$          19.2706	$                 3,854.12	225	$            19.2706	$            4,335.88