value: 100.00 points Hamilton Company uses a periodic inventory system. At the e
ID: 2550866 • Letter: V
Question
value: 100.00 points Hamilton 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 $7 1,910 Inventory, December 31, prior year For the current year: 6,070 4,100 2,800 Purchase, March 21 Purchase, August1 4 Inventory, December 31, current year Required Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 4 decimal places and final answers to nearest whole dollar amount.) Answer is complete but not entirely correct. Average Cost FIFO Ending invento Cost of goods sold LIFO $ 11,280 x $ 18,870 X S 15,473 $ 76,650 x $ 69,060 72,457Explanation / Answer
Period inventory system:
Units available for sale:
1910 units * $7 = $13370
6070 units * $6 = $36420
4100 units * $4 = $16400
12080 units $66190
Units available 12080 units
Units in ending inventory 2800 units
Units sold 9280 units
FIFO:
Cost of goods sold:
1910 units * $7 = $13370
6070 units * $6 = $36420
1300 units * $4 = $5200
$54990
Ending inventory :
2800 units * $4 = $11200.
LIFO:
Cost of goods sold:
4100 units * $4 = $16400
5180 units * $6 = $31080
9280 units $47480.
Ending inventory:
1910 units * $7 = $13370
890 units * $6 = $5340
2800 $18710
Average cost method:
Average cost per unit = $66190 / 12080 units
= $5.47
Cost of goods sold:
9280 units * $5.47 = $50761.6
Ending inventory:
2800 units * $5.47 = $15316.
Particulars FIFO LIFO AVERAGE COST METOD Ending inventory $11200 $18710 $15316 Cost of goods sold $54990 $47480 $50761.6.Related Questions
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