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In: Accounting

Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December...

Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 1,890 $ 8 For the current year: Purchase, March 21 6,030 7 Purchase, August 1 4,110 5 Inventory, December 31, current year 2,810 Required: Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 4 decimal places and final answers to nearest whole dollar amount.)

Solutions

Expert Solution

FIFO
Date Particulars Units Cost per Unit Total Cost
Dec 31 Beginning Inventory 1890 8 15,120
Mar 21 Purchase 6030 7 42,210
Aug 1 Purchase 4110 5 20,550
Cost of Goods Available for Sale 12030 77,880
Less: Ending Inventory (2810*5) 2810 14,050
Cost of Goods Sold 63,830
LIFO (Periodic)
Date Particulars Units Cost per Unit Total Cost
Dec 31 Beginning Inventory 1890 8 15,120
Mar 21 Purchase 6030 7 42,210
Aug 1 Purchase 4110 5 20,550
Cost of Goods Available for Sale 12030 77,880
Less: Ending Inventory (1890*$8+920*$7) 2810 21,560
Cost of Goods Sold 56,320
Average Cost method
Date Particulars Units Cost per Unit Total Cost
Dec 31 Beginning Inventory 1890 8 15,120
Mar 21 Purchase 6030 7 42,210
Aug 1 Purchase 4110 5 20,550
Cost of Goods Available for Sale 12030 77,880
Less: Ending Inventory (2810*6.4738) 2810 18,191
Cost of Goods Sold 59,689

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