Question

Cullumber Company uses the periodic inventory system and had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of $26,000. At the end of the year, Cullumber had 60 units in ending inventory.

Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost.

Answer 1

FIFO
Date	Particulars	Units	Cost per Unit	Total Cost
	Beginning Inventory	100	$100.0	$10,000
	Purchase	200	$130	$26,000
	Cost of Goods Available for Sale	300		$36,000
	Less: Ending Inventory (60*130)	60		$7,800
	Cost of Goods Sold			$28,200
LIFO (Periodic)
Date	Particulars	Units	Cost per Unit	Total Cost
	Beginning Inventory	100	$100.0	$10,000
	Purchase	200	$130	$26,000
	Cost of Goods Available for Sale	300		$36,000
	Less: Ending Inventory (60*100)	60		$6,000
	Cost of Goods Sold			$30,000
Average Cost method
Date	Particulars	Units	Cost per Unit	Total Cost
	Beginning Inventory	100	$100.0	$10,000
	Purchase	200	$130	$26,000
	Cost of Goods Available for Sale	300		$36,000
	Less: Ending Inventory (60*120)	60	$120	$7,200
	Cost of Goods Sold			28,800