Question

Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2015, the accounting records provided the following information for product 1:

	Units	Unit Cost
Inventory, December 31, 2014	1,800		$	5
For the year 2015:
Purchase, March 21	5,020			7
Purchase, August 1	2,900			8
Inventory, December 31, 2015	4,130

Required:

Compute ending inventory and cost of goods sold 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.)

FIFO LIFO Average Cost Ending inventory Cost of goods sold

Answer 1

( Stock statement onFIFO basis)
	Purchase			Cost of Goods Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
01/01/2015							1,800	$5.00	$9,000
21/03/2015	5,020	$7.00	$35,140.00				1,800	$5.00	$9,000
							5,020	$7.00	$35,140
01/08/2015	2,900	$8.00	$23,200.00				1,800	$5.00	$9,000
							5,020	$7.00	$35,140
							2,900	$8.00	$23,200
				1800	5	9000	1230	$7.00	$8,610.00
				3,790	7	26530	2,900	$8.00	$23,200.00
Total	7,920		$23,200	5,590		$35,530	4,130		$31,810
( Stock statement on LIFO basis)
	Purchase			Cost of Goods Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
01/01/2015							1,800	$5.00	$9,000
21/03/2015	5,020	$7.00	$35,140.00				1,800	$5.00	$9,000
							5,020	$7.00	$35,140
01/08/2015	2,900	$8.00	$23,200.00				1,800	$5.00	$9,000
							5,020	$7.00	$35,140
							2,900	$8.00	$23,200
				2900	8	23200	1800	$5.00	$9,000.00
				2,690	7	18830	2,330	$7.00	$16,310.00
Total	7,920		$23,200	5,590		$42,030	4,130		$25,310
( Stock statement on Average basis)
	Purchase			Cost of Goods Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
01/01/2015							1,800	$5.00	$9,000
21/03/2015	5,020	$7.00	$35,140.00				6,820	$6.47	$44,140
01/08/2015	2,900	$8.00	$23,200.00				9,720	$6.93	$67,340
				5,590	$6.93	$38,738.70	4,130	$6.93	$28,601.30
Total	7,920		$23,200	5,590		$38,738.70	4,130		$28,601
												FIFO	LIFO	Average Cost
Ending Inventory		$31,810	$25,310	$28,601
Cost of Goods Sold		$35,530	$42,030	$38,739