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The units of an item available for sale during the year were as follows: Jan. 1 Inventory 50 units at $100 Mar. 10 Purchase 70 units at $110 Aug. 30 Purchase 30 units at $118 Dec. 12 Purchase 50 units at $120 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

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anthougo

The ending inventory cost and the cost of goods sold using FIFO, LIFO, and Weighted-Average Cost methods are as follows:

                                           FIFO        LIFO      Weighted-Average

Ending inventory           $9,540      $8,300            $8,896

Cost of goods sold      $12,700     $13,940           $13,344

Data and Calculations:

Date      Description          Units       Unit Cost    Total Cost

Jan. 1     Inventory               50              $100          $5,000

Mar. 10  Purchase               70               $110             7,700

Aug. 30 Purchase               30              $118             3,540

Dec. 12  Purchase              50              $120            6,000

Total                                 200                              $22,240

Dec. 31 Ending inventory  80

Number of units sold       120 (200 - 80)

Average cost per unit = $111.20 ($22,240/200) under the periodic system

FIFO:

Ending inventory = $9,540 (30 x $118 + 50 x $120)

Cost of goods sold = $12,700 ($22,240 - $9,540)

LIFO:

Ending inventory = $8,300 (50 x $100 + 30 x $110)

Cost of goods sold = $13,940 ($22,240 - $8,300)

Weighted-Average Cost:

Ending inventory = $8,896 (80 x $111.20)

Cost of goods sold = $13,344 (120 x $111.20)

Learn more: https://brainly.com/question/14586660

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