Question

Periodic inventory by three methods; cost of goods sold

The units of an item available for sale during the year were as follows:

Jan. 1	Inventory	50 units at $124
Mar. 10	Purchase	70 units at $134
Aug. 30	Purchase	30 units at $140
Dec. 12	Purchase	50 units at $144

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

Cost of Ending Inventory and Cost of Goods Sold
Inventory Method	Ending Inventory	Cost of Goods Sold
First-in, first-out (FIFO)	$___________	$_____________
Last-in, first-out (LIFO)	____________	______________
Weighted average cost	_____________	______________

Answer 1

	Units	Unit cost	Total
Jan 1	50	124	6200
Mar 10	70	134	9380
Aug 30	30	140	4200
Dec 12	50	144	7200
Total	200		26980
Average cost per unit	134.9	=26980/200
First-in, first-out (FIFO):
Ending Inventory	11400	=(50*144)+(80-50)*140
Cost of Goods Sold	15580	=26980-11400
Last-in, first-out (LIFO):
Ending Inventory	10220	=(50*124)+(80-50)*134
Cost of Goods Sold	16760	=26980-10220
Weighted average cost:
Ending Inventory	10792	=80*134.9
Cost of Goods Sold	16188	=26980-10792