Question

Nittany 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		$	5
For the current year:
Purchase, March 21	5,080			7
Purchase, August 1	3,000			8
Inventory, December 31, current year	4,180

Required:

Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.)

Answer 1

	FIFO	LIFO	Weighted Average
Ending Inventory	$    32,260.00	$            25,480.00	$               28,926
Cost of Goods Sold	$    36,750.00	$            43,530.00	$               40,067

• Workings

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	1890	$                   5.00	$                        9,450.00	1890	$                 5.00	$                 9,450.00	0	$                   5.00	$                         -
Purchases:
21-Mar	5080	$                   7.00	$                      35,560.00	3900	$                 7.00	$               27,300.00	1180	$                   7.00	$            8,260.00
01-Aug	3000	$                   8.00	$                      24,000.00	0	$                 8.00	$                              -	3000	$                   8.00	$          24,000.00
TOTAL	9970		$                      69,010.00	5790		$               36,750.00	4180		$          32,260.00
LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	1890	$                   5.00	$                        9,450.00	0	$                 5.00	$                              -	1890	$                   5.00	$            9,450.00
Purchases:
21-Mar	5080	$                   7.00	$                      35,560.00	2790	$                 7.00	$               19,530.00	2290	$                   7.00	$          16,030.00
01-Aug	3000	$                   8.00	$                      24,000.00	3000	$                 8.00	$               24,000.00	0	$                   8.00	$                         -
TOTAL	9970		$                      69,010.00	5790		$               43,530.00	4180		$          25,480.00
Average Method	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	1890	$                   5.00	$                        9,450.00
Purchases:
21-Mar	5080	$                   7.00	$                      35,560.00
01-Aug	3000	$                   8.00	$                      24,000.00
TOTAL	9970	$                6.922	$                      69,010.00	5790	$             6.9200	$               40,066.80	4180	$              6.9200	$          28,925.60