Question

The Lippert Company uses the perpetual inventory system. The following July data are for an item in Lippert's inventory:

July	1	Beginning inventory	60	units @	$11	per unit
	10	Purchased	80	units @	$12	per unit
	15	Sold	90	units @
	26	Purchased	55	units @	$13	per unit

Calculate the cost of goods sold for the July 15 sale using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.

Round your final answers to the nearest dollar. For weighted-average cost, do not round the weighted-average unit cost

Answer 1

Cost of goods sold for July 15 sale =

	FIFO	LIFO	Weighted Average
Cost of Goods Sold	$                 1,020	$                   1,070	$             1,041

Working

	Units	Cost per unit	value
Beginning Balance	60	$                   11.00	$ 660
Purchases
	80	$                   12.00	$ 960
Total	140		$ 1,620

.

Average Cost of Inventory
Units	(A)	140
Total Cost	(B)	$ 1,620
Average Cost	(C=B/A)	$              11.5714

.

FIFO
Total Units Available for sale		140
Units Sold		90
Closing Stock in Units		50
Valuation
Ending Inventory	50	@	$             12.00	$ 600
	0	@	$             25.00	$ 0
Value Of Ending Inventory				$ 600
Cost of Goods sold				$ 1,020
LIFO
Total Units Available for sale		140
Units Sold		90
Closing Stock in Units		50
Valuation
Ending Inventory	50	@	$             11.00	$ 550
	0	@	$             24.00	$ 0
Value Of Ending Inventory				$                  550
Cost of Goods sold	1620 minus 550			$              1,070
Weighted Average method
Total Units Available for sale		140
Units Sold		90
Closing Stock in Units		50
Valuation
Ending Inventory	50	@	$        11.5714	$                  579
Value Of Ending Inventory				$                  579
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$              1,041