Question

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.)

Answer 1

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