Question

  Consider the following information for questions 22-25:

              September 1    Inventory                                  10 @ $3.00  

                                   8    Purchased                                30 @ $3.20  

                                 17   Purchased                                 20 @ $3.10  

                                 25   Purchased                                 40 @ $3.40

                                                            Units Sold: 55

COST OF GOODS SOLD under the FIFO method is (assume a periodic inventory system):

		$180.20.
		$167.50.
		$172.50.
		$184.25.

     Consider the following information for questions 22-25:

              September 1    Inventory                                  10 @ $3.00  

                                   8    Purchased                                30 @ $3.20  

                                 17   Purchased                                 20 @ $3.10  

                                 25   Purchased                                 40 @ $3.40

                                                            Units Sold: 55

COST OF GOODS SOLD under the average cost method is (assume a periodic inventory system):

		$177.25
		$175.80
		$178.20.
		$145.80.

     Consider the following information for questions 22-25:

              September 1    Inventory                                  10 @ $3.00  

                                   8    Purchased                                30 @ $3.20  

                                 17   Purchased                                 20 @ $3.10  

                                 25   Purchased                                 40 @ $3.40

                                                            Units Sold: 55

ENDING INVENTORY (NOT Cost of Goods Sold) under LIFO method is (assume a periodic inventory system):

		$194.25.
		$182.50.
		$154.75.
		$141.50.

    Consider the following information for questions 22-25:

              September 1    Inventory                                  10 @ $3.00  

                                   8    Purchased                                30 @ $3.20  

                                 17   Purchased                                 20 @ $3.10  

                                 25   Purchased                                 40 @ $3.40

                                                            Units Sold: 55

Assume that of the 55 units sold, 5 units were sold on Sept. 5, 30 were sold on Sept. 19, and 20 were sold on Sept. 30. Calculate ENDING INVENTORY (NOT Cost of Goods Sold) under LIFO method, assuming that the PERPETUAL inventory system is used:

		$154.00.
		$147.00.
		$167.00.
		$156.00.

Answer 1

22)

Answer: $172.50

Computation of Cost of good sold under FIFO Methods:

Cost of good sold = 10 units @ $3 + 30 units @ $3.2 + 15 units @$3.1 = $30 + $96 + $46.5 = $172.50

23)

Answer: $178.20

Computation of Cost of good sold under Avearge cost methods Methods:

Average cost = Total cost / Number of units

= ($30 + $96 + $62 + $136) / 100 units

= $324 / 100 units = $3.24

Cost of good sold = 55 units x $3.24 = $178.2

24)

Answer: $141.50

Computation of Ending Inventory under LIFO Periodic Methods:

Ending Inventory = 10 units @ $3 + 30 units @ $3.2 + 5 units @ $3.10

= $30 + $96 + $15.5

= $141.5

25)

Answer: $147.00

Computation of Ending Inventory Under LIFO Perpetual:

Ending Inventory = 5 units @ $3 + 20 units @ $3.2 + 20 units @ $3.40

= $15 + $64 + $68

= $147