Question

1. Mabel Consolidated sells packrabbits. Below is information relating to Mabel’s purchase of packrabbits during September. During the same month, 142 packrabbits were sold. Mabel uses a periodic inventory system.

Date	Explanation	Units	Unit Cost	Total Cost
Sept.  1	Inventory	28	$75
Sept. 12	Purchases	53	78
Sept. 19	Purchases	68	82
Sept. 26	Purchases	34	85
	Totals	183

Determine Cost of Goods Sold and Cost of Ending Inventory under FIFO, LIFO and Average Inventory methods and show your work!

Answer 1

	FIFO	LIFO	Average
Ending Inventory	$               3,464	$             3,114	$           3,293
Cost of Goods Sold	$      11,236.00	$    11,586.00	$         11,407

Working

	Units	Cost per unit	value
Beginning Balance	28	$             75.00	$     2,100.00
Purchases
12-Sep	53	$             78.00	$     4,134.00
19-Sep	68	$             82.00	$     5,576.00
26-Sep	34	$             85.00	$     2,890.00
	183		$   14,700.00

Average Cost of Inventory
Units	(A)	183
Total Cost	(B)	$    14,700.00
Average Cost	(C=B/A)	$             80.33

FIFO
Total Units Avalable for sale		183
Units Sold		142
Closing Stock in Units		41
Valuation
Ending Inventory	34	@	$           85.00	$    2,890.00
	7	@	$           82.00	$        574.00
Value Of Ending Inventory				$    3,464.00
Cost of Goods sold	(14700-3464)			$ 11,236.00
LIFO
Total Units Avalable for sale		183
Units Sold		142
Closing Stock in Units		41
Valuation
Ending Inventory	28	@	$           75.00	$    2,100.00
	13	@	$           78.00	$    1,014.00
Value Of Ending Inventory				$    3,114.00
Cost of Goods sold	(14700-3114)			$ 11,586.00
Weighted Average method
Total Units Avalable for sale		183
Units Sold		142
Closing Stock in Units		41
Valuation
Ending Inventory	41	@	$           80.33	$    3,293.44
Value Of Ending Inventory				$    3,293.44
Cost of Goods sold	(Total Purchase and opening stock Minus Closing Stock)			$ 11,406.56