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

Question

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 1,920 $ 3 For the current year:

Purchase, March 21 5,080 $5

Purchase, August 1 2,940 $6

Inventory, December 31, current year 4,000

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 AVERAGE COST]

ENDING INVENTORY   

COST OF GOODS SOLD

please just list the ending inventory and cost of goods sold for each given example of fifo,lifo,cogs.

Explanation / Answer

ans)

Units Available for Sale = 9940 (1920 + 5080 + 2940)

Total cost of goods available for sale = 48800

Ending inventory = 4000 units

Units sold = 5940

FIFO

Ending inventory = 1060 X 5 = 5300

2940 X 6 = 17640

22940

Cost of goods sold = 1920 X 3 = 5760

4020 X 5 = 20100

25860

FIFO

Ending inventory = 1920 X 3 = 5760

2080 X 5 = 10400

16160

Cost of goodss sold

3000 X 5 = 15000

2940 X 6 = 17640

32640

Average cost inventory costing method

Cost per unit = Cost of goods available for sale / Number of units

= 48800 / 9940 = 4.91

Ending inventory = 4000 X 4.91 = 19640

Cost of goods sold = 5940 X 4.91 = 29165

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

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