Question

1. Periodic inventory by three methods; cost of goods sold

   The units of an item available for sale during the year were as follows:

   Jan. 1	Inventory	30 units at $118
   Mar. 10	Purchase	60 units at $128
   Aug. 30	Purchase	30 units at $136
   Dec. 12	Purchase	80 units at $142

   There are 60 units of the item in the physical inventory at December 31. The periodic inventory system is used.

   Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

   Cost of Ending Inventory and Cost of Goods Sold
   Inventory Method	Ending Inventory	Cost of Goods Sold
   First-in, first-out (FIFO)	$fill in the blank 1	$fill in the blank 2
   Last-in, first-out (LIFO)	fill in the blank 3	fill in the blank 4
   Weighted average cost	fill in the blank 5	fill in the blank 6

Answer 1

Correct Answer:

	Ending inventory	Cost of Goods sold
FIFO	$   8,520	$ 18,020
LIFO	$   7,320	$ 19,220
Weighted Average	$   7,962	$ 18,578

Working:

FIFO
FIFO	Cost of Goods Available for sale	Cost of goods sold	Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
1-Jan	30	$              118	$              3,540	30	$     118	$   3,540	0	$          118	$                     -
Purchase
10-Mar	60	$              126	$              7,560	60	$     126	$   7,560	0	$          126	$                     -
30-Aug	30	$              136	$              4,080	30	$     136	$   4,080	0	$          136	$                     -
12-Dec	80	$              142	$           11,360	20	$     142	$   2,840	60	$          142	$             8,520
Total	200		$           26,540	140		$ 18,020	60		$              8,520

LIFO
	Cost of Goods Available for sale	Cost of goods sold	Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
1/1/2020	30.00	118.00	$        3,540.00		$     118	$          -	30	$          118	$              3,540
Purchase		0.00
10-Mar	60.00	126.00	$        7,560.00	30	$     126	$   3,780	30	$          126	$              3,780
30-Aug	30.00	136.00	$        4,080.00	30	$     136	$   4,080	0	$          136	$                     -
12-Dec	80.00	142.00	$     11,360.00	80	$     142	$ 11,360	0	$          142	$                     -
Total	200		$     26,540.00	140		$ 19,220	60		$              7,320

Weighted Average
Weighted Average	Cost of Goods Available for sale	Cost of goods sold	Ending Inventory
	No. of units	Cost per unit	Cost of goods avaiable for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
1-Jan	30.00	118.00	$              3,540			$          -			$                     -
Purchase						$          -
10-Mar	60.00	126.00	$              7,560			$          -			$                     -
30-Aug	30.00	136.00	$              4,080			$          -			$                     -
12-Dec	80.00	142.00	$           11,360			$          -			$                     -
Total	200		$     26,540.00	140	132.70	$ 18,578	$          60		$              7,962

End of answer.

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