Question

Bufford Appliance uses a perpetual inventory system. For its flat-screen television sets, the January 1 inventory was 3 sets at $600 each. On January 10, Bufford purchased 6 units at $660 each. The company sold 2 units on January 8 and 4 units on January 15.

Answer 1

As per FIFO
	Units	Cost per unit	Total cost
Beginning balance	3	$600	$1,800
10-Jan	6	$660	$3,960
Total	9		$5,760
No. of units sold	6
Ending Inventory	3
As per FIFO
Cost of Good sold	$3,780
ending Inventory	$1,980
	Units	Cost per unit	Total cost
Beginning balance	3	$600	$1,800
10-Jan	3	$660	$1,980
		Total	$3,780
ending Inventory
10-Jan	3	$660	$1,980
As per LIFO
Cost of Good sold	$3,960
ending Inventory	$1,800
	Units	Cost per unit	Total cost
10-Jan	6	$660	$3,960
		Total	$3,960
ending Inventory
Beginning balance	3	$600	$1,800
Weighted average cost	640
5760/9
Cost of Good sold (640*6)	3840
ending Inventory (640*3)	1920
If any doubt please comment