Question

# Penn Company uses a periodic inventory system. At the end of the annual accounting period, December...

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 1,910 \$ 6 For the current year: Purchase, March 21 5,100 8 Purchase, August 1 2,980 9 Inventory, December 31, current year 4,180 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.)

 Units Unit cost Total Inventory, December 31 1910 6 11,460 Purchase, March 21 5100 8 40,800 Purchase, August 1 2980 9 26,820 Total 9,990 79,080 FIFO: Ending inventory 36,420 =(2980*9)+(1200*8) Cost of goods sold 42,660 =79,080-36,420 LIFO: Ending inventory 29,620 =(1910*6)+(2270*8) Cost of goods sold 49,460 =79,080-29,620 Average cost: Average cost = 79,080/9,990 = \$7.92 Ending inventory 33,106 =4180*7.92 Cost of goods sold 45,974 =79,080-33,106

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