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	1,940		$	4
For the current year:
Purchase, March 21	5,110			6
Purchase, August 1	2,860			7
Inventory, December 31, current year	4,160

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
Date	Particulars	Units	Cost per Unit	Total Cost
Dec 31	Beginning Inventory	1940	4	7,760
Mar 21	Purchase	5110	6	30,660
Aug 1	Purchase	2860	7	20,020
	Cost of Goods Available for Sale			58,440
	Less: Ending Inventory ( 2860*7 + 1300*$6)			29,120
	Cost of Goods Sold			29,320
LIFO (Periodic)
Date	Particulars	Units	Cost per Unit	Total Cost
Dec 31	Beginning Inventory	1940	4	7,760
Mar 21	Purchase	5110	6	30,660
Aug 1	Purchase	2860	7	20,020
	Cost of Goods Available for Sale			58,440
	Less: Ending Inventory ( 1940*4 + 2220*$6)			21,080
	Cost of Goods Sold			37,360
Average Cost method
Date	Particulars	Units	Cost per Unit	Total Cost
Dec 31	Beginning Inventory	1940	4	7,760
Mar 21	Purchase	5110	6	30,660
Aug 1	Purchase	2860	7	20,020
	Cost of Goods Available for Sale			58,440
	Less: Ending Inventory (4160*5.67)			23,587
	Cost of Goods Sold			34,853