Laird Company sells coffee makers used in business offices. Its beginning invent

Question

Laird Company sells coffee makers used in business offices. Its beginning inventory of coffee makers was 200 units at $45 per unit. During the year, Laid made two batch purchases of coffee makers. The first was a 300-unit purchase as $50 per unit; the second was a 350-unit purchase at $52 per unit. During the period, Laird sold 800 coffee makers

Required

Determine the amount of product costs that should be allocated to cost of goods sold and ending inventory, assuming that Laird uses

1.FIFO
2.LIFO
3.Weighted Average

Explanation / Answer

Assuming your question is what is COGS and ending inventory under FIFO and LIFO. Under FIFO ending inventory is 50*52= 2,600 and COGS is 39,600. Under LIFO ending inventory is 50 *45= 2,250 and COGS is 39,950.

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