Question

Inventory Costing Methods

VanderMeer Inc. reported the following information for the month of February:

Inventory, February 1		59 units @ $18
Purchase:
February 7		53 units @ $20
February 18		58 units @ $21
February 27		44 units @ $22

During February, VanderMeer sold 135 units. The company uses a periodic inventory system.

Required:

What is the value of ending inventory and cost of goods sold for February under the following assumptions.

Assumption	Cost of Goods Sold	Ending Inventory
1. Of the 135 units sold, 50 cost $18, 37 cost $20, 44 cost $21, and 4 cost $22.	$	$
2. FIFO	$	$
3. LIFO	$	$
4. Weighted average method (Round average unit cost to the nearest cent, and round all other calculations and your final answers to the nearest dollar.)

Answer 1

• Requirements

	Ending Inventory	Cost of Goods Sold
Specific Identification	$                   1,656	$                  2,652
FIFO	$                   1,703	$                  2,605
LIFO	$                   1,462	$                  2,846
Weighted Average	$                   1,590	$                  2,718

• Workings

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	59	$                18.00	$                        1,062.00	59	$               18.00	$                 1,062.00	0	$                 18.00	$                         -
Purchases:
07-Feb	53	$                20.00	$                        1,060.00	53	$               20.00	$                 1,060.00	0	$                 20.00	$                         -
18-Feb	58	$                21.00	$                        1,218.00	23	$               21.00	$                     483.00	35	$                 21.00	$                735.00
27-Feb	44	$                22.00	$                            968.00	0	$               22.00	$                              -	44	$                 22.00	$                968.00
TOTAL	214		$                        4,308.00	135		$                 2,605.00	79		$            1,703.00
LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	59	$                18.00	$                        1,062.00	0	$               18.00	$                              -	59	$                 18.00	$            1,062.00
Purchases:
07-Feb	53	$                20.00	$                        1,060.00	33	$               20.00	$                     660.00	20	$                 20.00	$                400.00
18-Feb	58	$                21.00	$                        1,218.00	58	$               21.00	$                 1,218.00	0	$                 21.00	$                         -
27-Feb	44	$                22.00	$                            968.00	44	$               22.00	$                     968.00	0	$                 22.00	$                         -
TOTAL	214		$                        4,308.00	135		$                 2,846.00	79		$            1,462.00
Specific Identification	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	59	$                18.00	$                        1,062.00	50	$               18.00	$                     900.00	9	$                 18.00	$                162.00
Purchases:
07-Feb	53	$                20.00	$                        1,060.00	37	$               20.00	$                    740.00	16	$                 20.00	$                320.00
18-Feb	58	$                21.00	$                        1,218.00	44	$               21.00	$                     924.00	14	$                 21.00	$                294.00
27-Feb	44	$                22.00	$                            968.00	4	$               22.00	$                       88.00	40	$                 22.00	$                880.00
TOTAL	214		$                        4,308.00	135		$                 2,652.00	79		$            1,656.00
Average Method	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	59	$                18.00	$                        1,062.00
Purchases:
07-Feb	53	$                20.00	$                        1,060.00
18-Feb	58	$                21.00	$                        1,218.00
27-Feb	44	$                22.00	$                            968.00
TOTAL	214	$            20.1308	$                        4,308.00	135	$          20.1300	$                 2,717.55	79	$            20.1300	$            1,590.27