Question

Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1:

	Units	Unit Cost
Inventory, December 31, prior year	1,840		$	4
For the current year:
Purchase, March 21	5,170			6
Purchase, August 1	2,970			7
Inventory, December 31, current year	4,020

Required:

Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.)

	FIFO	LIFO	Average Cost
Ending inventory
Cost of goods sold

Hints

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Balance Oct1	1840	4	7360	1840	4	7360
Purchasse
21-Mar	5170	6	31020	4120	6	24720	1050	6	6300
31-Aug	2970	7	20790				2970	7	20790
TOTAL	9980		59170	5960		32080	4020		27090
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Balance Oct1	1840	4	7360				1840	4	7360
Purchasse
21-Mar	5170	6	31020	2990	6	17940	2180	6	13080
31-Aug	2970	7	20790	2970	7	20790
TOTAL	9980		59170	5960		38730	4020		20440
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Balance Oct1	1840	4	7360
Purchasse
21-Mar	5170	6	31020
31-Aug	2970	7	20790
TOTAL	9980	5.929	59170	5960	5.929	35337	4020	5.929	23833
			FIFO	LIFO	Average
Cost of Goods available			59170	59170	59170
Ending inventory			27090	20440	23833
Cost of goods sold			32080	38730	35337