Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods.

Penn 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:

Required

Expert Solution

	Units	Unit cost	Total
Inventory beginning	2000	5	10000
March 21 purchase	5000	6	30000
August 1 purchase	3000	8	24000
Total	10000		64000

Average cost per unit	6.4	=64000/10000

FIFO:
Ending inventory	30000	=(30008)+(4000-3000)6
Cost of goods sold	34000	=64000-30000

LIFO:
Ending inventory	22000	=(20005)+(4000-2000)6
Cost of goods sold	42000	=64000-22000

Average cost:
Ending inventory	25600	=4000*6.4
Cost of goods sold	38400	=64000-25600

ekkarill92 answered 2 years ago

Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost Assume that...

Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost Assume that Madden Company reports the following initial balance and subsequent purchase of inventory. Inventory balance at beginning of year 1,820 units @ $150 each $273,000 Inventory purchased during the year 2,380 units @ $180 each 428,400 Cost of goods available for sale during the year 4,200 units $701,400 Assume that 2,800 units are sold during the year. Compute the cost of goods sold for the...

Calculate the cost of goods sold and the cost of ending inventory using the FIFO, LIFO, and average cost methods.

Inventory Costing Methods: Periodic Inventory Systems. (Appendix 6B)Tyler Company has the following information related to purchases and sales of one of its inventory items.DateDescriptionUnits Purchased at CostUnits Sold at RetailSept. 1Beginning inventory20 units @ $510Purchase30 units @ $820Sales40 units @ $1525Purchase25 units at $10Assume that the company uses the periodic inventory system.Required:Calculate the cost of goods sold and the cost of ending inventory using the FIFO, LIFO, and average cost methods. (Note: Use four decimal places for per-unit calculations and...

E7-6 Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost LO7-2...

E7-6 Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost LO7-2 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 1,810 $ 8 For the current year: Purchase, March 21 6,020 7 Purchase, August 1 4,010 5 Inventory, December 31, current year 2,920 Find LIFO...

Study the FIFO and LIFO explanations in Chapter 8. 1) Compute ending FIFO inventory and cost of goods sold.

FIFO & LIFO InventoryStudy the FIFO and LIFO explanations in Chapter 8. 1) Compute ending FIFO inventory and cost of goods sold. Assume $90,000 sales; beginning inventory 500 units @$50; purchases of 400 units @$50; 100 units @$65; 400 units @$80. 2) Compute the cost of goods sold percentage of sales. 3) Compute ending LIFO inventory and cost of goods sold, using same assumptions. 4) Compute the cost of goods sold percentage of sales. 5) Comment on the difference in...

how do you calculate ending inventory or cost of goods sold under LIFO and FIFO ...

how do you calculate ending inventory or cost of goods sold under LIFO and FIFO how do you use the Gross Profit Method to estimate a loss of inventory how do you use the relative sales value method of allocating cost to items purchased What are the common disclosures required for inventory?

Calculate cost of ending inventory and cost of goods sold using periodic FIFO, LIFO, and Weighted...

Calculate cost of ending inventory and cost of goods sold using periodic FIFO, LIFO, and Weighted Average Cost methods. Description # of units Cost per unit Beginning inventory: 20 20 Jan.15 Purchase: 22 27 Jan. 20 Sale 10 blank Jan.25 Purchase 18 25 Jan.28 Sale 15 blank

Computing Cost of Goods Sold and Ending Inventory UnderFIFO, LIFO, and Average CostAssume that...

Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average CostAssume that Madden Company reports the following initial balance and subsequent purchase of inventory.Inventory balance at beginning of year 1,560 units @ $150 each $234,000Inventory purchased during the year 2,040 units @ $180 each 367,200Cost of goods available for sale during the year 3,600 units $601,200Assume that 2,400 units are sold during the year. Compute the cost of goods sold for the year and the inventory on...

Calculate cost of goods sold and ending inventory for Emergicare’s bandages orders using FIFO, LIFO and...

Calculate cost of goods sold and ending inventory for Emergicare’s bandages orders using FIFO, LIFO and average cost. There are 36 units in ending inventory. (Do not round intermediate calculations, such as average cost per unit values. Round your answers to the nearest cent.) Date Units purchased Cost per unit Total cost January 1 43 $ 7.10 $ 305.30 April 1 38 6.35 241.30 June 1 53 6.10 323.30 September 1 48 6.60 316.80 Total 182 $ 1,186.70 Cost of...

How can i calculate Cost of goods sold and ending inventory using FIFO, LIFO and the...

How can i calculate Cost of goods sold and ending inventory using FIFO, LIFO and the periodic system given the information below? On December 1, 2017, Ivanhoe Company had the account balances shown below. Debits Credits Cash $5,180 Accumulated Depreciation—Equipment $1,460 Accounts Receivable 4,230 Accounts Payable 2,710 Inventory (2,900 x $0.60) 1,740 Common Stock 10,200 Equipment 21,400 Retained Earnings 18,180 $32,550 $32,550 The following transactions occurred during December. Dec. 3 Purchased 3,900 units of inventory on account at a cost...

Calculate cost of goods sold and ending inventory for Emergicare’s bandages orders using FIFO, LIFO and...

Calculate cost of goods sold and ending inventory for Emergicare’s bandages orders using FIFO, LIFO and average cost. There are 38 units in ending inventory. (Do not round intermediate calculations, such as average cost per unit values. Round your answers to the nearest cent.) Date Units purchased Cost per unit Total cost January 1 54 $ 7.50 $ 405.00 April 1 49 6.75 330.75 June 1 64 6.50 416.00 September 1 59 7.00 413.00 Total 226 $ 1,564.75. FIFO $...

Question

Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods.

Solutions

Expert Solution

Related Solutions

Computing Cost of Goods Sold and Ending Inventory Under FIFO, LIFO, and Average Cost Assume that...

Calculate the cost of goods sold and the cost of ending inventory using the FIFO, LIFO, and average cost methods.

E7-6 Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost LO7-2...

Study the FIFO and LIFO explanations in Chapter 8. 1) Compute ending FIFO inventory and cost of goods sold.

how do you calculate ending inventory or cost of goods sold under LIFO and FIFO ...

Calculate cost of ending inventory and cost of goods sold using periodic FIFO, LIFO, and Weighted...

Computing Cost of Goods Sold and Ending Inventory UnderFIFO, LIFO, and Average CostAssume that...

Calculate cost of goods sold and ending inventory for Emergicare’s bandages orders using FIFO, LIFO and...

How can i calculate Cost of goods sold and ending inventory using FIFO, LIFO and the...

Calculate cost of goods sold and ending inventory for Emergicare’s bandages orders using FIFO, LIFO and...