Question

Hamilton Company uses a periodic inventory

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 flowing information for product Units 1320 Cost 55 Inventory, December 31.pro year For the current year Purchase March 21 Purchase August 1 ventory December 31. Current year 5.120 4 100 Required: Compute ending inventory and cost of goods sold under FIFO UFO, and average contentory costing (Round "Average cost per nearest who do amount FIFO LIFO (Ending wventory Cost of goods sold

Answer 1

Ending Inventory Cost of Goods Sold FIFO $ 5,760 $36.020 LIFO S 13,340 S $ 28.440 $ Average cost 9.994 31,786 Notes: FIFO Method: Production Units =1,820+6,120+4,100 = 12,040 Ending Inventory Units = 2.880 Sale Units = 12,040-2.880 = 9,160 Cost of Goods sold Particulars Units Unit Cost Beginning December 31, prior year | 1820 S 55 March. 21 6120 S 4 S August. 1 1220 S 2 S 9160 S Ending Inventory = 2,880*$2 = $5,760 Total 9.100 24.480 2.440 36.020

LIFO Method: Cost of Goods sold Particulars Units Unit Cost August. 1 4100 S 25 March 21 5060 S 4 S 9160 S Ending Inventory = (6.120-5060)*54 +1.820*$5 = $13,340 Total 8.200 20.240 28.440 Total Average Cost Method Weighted Avearge Unit Cost Particulars Beginning December 31, prior year March 21 August.1 Units 1820 6120 4100 12040 Unit Cost S 5 $ S 4 $ S 25 9.100 24,480 8.200 41.780 Unit Cost Total Cost/No of Units available for Sale $41,780/12,040 = $3.4701 9160*$3.4701 = $31786 2880*$3.4701 = $9994 Cost of Goods Sold Ending Inventory