Penn Company uses a periodic inventory system. At the end of the annual acoounti

Question

Penn Company uses a periodic inventory system. At the end of the annual acoounting period, Deoamber 31 of the current year, the accounting records provided the following information for product 1 Unit Units Cost Inventory, December 31. 1,800 3 For the current year Inventory, December 31. 4.190 Purchase, March 21 Purchase, August 1 930 6 5,110 current year 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) FIFO LIFO Ending Cost of oods sold

Explanation / Answer

Calculate ending inventory and cost of goods sold :

FIFO LIFO Average cost Ending inventory (2930*6+1260*5) = 23880 (1800*3+2390*5) = 17350 (48530/9840*4190) = 20665 Cost of goods sold (3850*5+1800*3) = 24650 (2720*5+2930*6) = 31180 (48530/9840*5650)=27865

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