Question

Periodic inventory by three methods; cost of goods sold

The units of an item available for sale during the year were as follows:

Jan. 1	Inventory	50 units at $128
Mar. 10	Purchase	70 units at $140
Aug. 30	Purchase	30 units at $144
Dec. 12	Purchase	50 units at $146

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

Cost of Ending Inventory and Cost of Goods Sold
Inventory Method	Ending Inventory	Cost of Goods Sold
First-in, first-out (FIFO)	$	$
Last-in, first-out (LIFO)
Weighted average cost

Answer 1

Calculate following

	Unit	Unit Cost	Total Cost
Beginning inventory	50	128	6400
Purchase 1	70	140	9800
Purchase 2	30	144	4320
Purchase 3	50	146	7300
Total	200		27820

Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

Cost of Ending Inventory and Cost of Goods Sold
Inventory Method	Ending Inventory	Cost of Goods Sold
First-in, first-out (FIFO)	$4320+7300 = 11620	$27820-11620 = 16200
Last-in, first-out (LIFO)	6400+30*140 = 10600	27820-10600 = 17220
Weighted average cost	139.10*80 = 11128	27820-11128 = 16692