Hamilton Company uses a periodic inventory system. At the end of the annual acco

Question

Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2012, the accounting records provided the following information for product 1:

Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. (Round intermediate calculations to 4 decimal places and round your final answers to the nearest dollar amount. Cost of goods sold and ending inventory may not add up to cost of goods available for sale due to rounding. Omit the "$" sign in your response.)

Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2012, the accounting records provided the following information for product 1:

Explanation / Answer

Hi,

Please find the answer as follows:

Goods Sold during the Year = 1860 + 6100 + 4040 - 2880 = 9120 units

FIFO

Ending Inventory = 2880 * 5 = 14400

Cost of Goods Sold = 1860*8 + 6100*7 + 1160*5 = 63380

LIFO

Ending Inventory = 1860 * 8 + 1020*7 = 22020

Cost of Goods Sold = 5080*7 + 4040*5 = 55760

Average Cost

Ending Inventory = 2880*6.48 = 18662.4 or 18662

Cost of Goods Sold = 9120*6.48 = 59707.6 or 59708

Average Cost Formula =(1860*8+6100*7+4040*5)/(1860+6100+4040) = 6.48

Thanks.

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.