Question

Jennifer Company reports the following for the month of June.

Date			Explanation		Units			Unit Cost			Total Cost
June	1		Inventory		500			$5			$2,500
	12		Purchase		800			6			4,800
	23		Purchase		1,000			7			7,000

Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 870 units occurred on June 15 for a selling price of $8 and a sale of 900 units on June 27 for $9. (Round average cost per unit to 3 decimal places, e.g. 5.254 and final answers to 0 decimal places, e.g. 2,520.)

		FIFO		LIFO		Moving Average
Cost of the ending inventory		$enter the cost of the ending inventory in dollars under FIFO method		$enter the cost of the ending inventory in dollars under LIFO method		$enter the cost of the ending inventory in dollars under moving average method
Cost of goods sold		$enter the cost of the goods sold in dollars under FIFO method		$enter the cost of the goods sold in dollars under LIFO method		$enter the cost of the goods sold in dollars under moving average method

Answer 1

	FIFO	LIFO	Moving Average
Cost of the ending inventory	$    3,710	$    2,850	$          3,490
Cost of goods sold	$ 10,590	$ 11,450	$        10,811

First In First Out (FIFO) Method						Perpetual Inventory System
Date	Purchase			Cost of goods sold			Inventory on Hand
	Qty	Price	Value	Qty	Price	Value	Qty	Price	Value
June 1							500	$             5	$          2,500
June 12	800	$             6	$        4,800				500	$             5	$          2,500
							800	$             6	$          4,800
June 15				500	5	$          2,500	430	$             6	$          2,580
				370	6	$          2,220
June 23	1000	$             7	$        7,000				430	$             6	$          2,580
							1000	$             7	$          7,000
June 27				430	6	$          2,580	530	$             7	$          3,710
				470	7	$          3,290
Total						$        10,590			$          3,710
Cost of goods sold						$        10,590
Cost of the ending inventory									$          3,710
Last In First Out (LIFO) Method						Perpetual Inventory System
Date	Purchase			Cost of goods sold			Inventory on Hand
	Qty	Price	Value	Qty	Price	Value	Qty	Price	Value
June 1							500	$             5	$          2,500
June 12	800	$             6	$        4,800				500	$             5	$          2,500
							800	$             6	$          4,800
June 15				800	6	$          4,800	430	$             5	$          2,150
				70	5	$              350
June 23	1000	$             7	$        7,000				430	$             5	$          2,150
							1000	$             7	$          7,000
June 27				900	7	$          6,300	430	$             5	$          2,150
							100	$             7	$              700
Total						$        11,450			$          2,850
Cost of goods sold						$        11,450
Cost of the ending inventory									$          2,850
Moving Average Method						Perpetual Inventory System
Date	Purchase			Cost of goods sold			Inventory on Hand
	Qty	Price	Value	Qty	Price	Value	Qty	Price	Value
June 1							500	$    5.000	$          2,500
June 12	800	$    6.000	$        4,800				1300		$          7,300
Average cost per unit (7300/1300)								$    5.615
June 15				870	$    5.615	$          4,885	430	$    5.615	$          2,414
June 23	1000	$             7	$        7,000				1430		$          9,414
Average cost per unit (9415/1430)								$    6.584
June 27				900	$    6.584	$          5,926	530	$    6.584	$          3,490
Total						$        10,811			$          3,490
Cost of goods sold						$        10,811
Cost of the ending inventory									$          3,490