Question

A company's inventory records indicate the following data for the month of September:

Sept 1	beginning	250 units at $10 each
Sept 5	purchased	150 units at $11 each
Sept 10	sold	300 units
Sept 20	purchased	400 units at $14 each
Sept 25	sold	200 units

If the company uses the perpetual inventory system, what would be the cost of its ending inventory and the cost of goods sold for July based on FIFO, LIFO and Weighted Average methods?

Answer 1

Cost of goods available for sale = 9750

1.FIFO

Ending inventory 4200 = 300*14

Cost of goods sold 5550 = 9750 - 4200

2. LIFO

Ending inventory 3050 = (250*10) + (300 - 250)*11

Cost of goods sold 6700 = 9750 - 3050

3. Weighted average cost

Ending inventoy 3654 = 300*12.18

Cost of goods sold 6096 = 9750 - 3654