Question

Chapter 7 Connect Homework Nittany 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 Units 1,940 Unit Cost $ 7 Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year 5,090 2,810 4,048 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

Answer 1

Correct Answer:

	FIFO	LIFO	Weighted Average
Cost of Goods Sold	$                  48,320	$                  55,010	$                       51,569
Ending Inventory	$                  39,170	$                  32,480	$                       35,921
Cost of Goods Sold	$                  48,320	$                  55,010	$                       51,569

Working:

Cost of Goods Available for sale
	Units	Cost per unit	value
Beginning Inventory	1940	$                         7.0	$                   13,580.0
Purchases	5090	$                         9.0	$                   45,810.0
Purchases	2810	$                       10.0	$                 28,100.00
Total	9840		$                       87,490

	FIFO
A	Total Units Available for sale			9840		$               87,490
	Units Sold			5800
	Ending Inventory Units			4040
	Valuation
	Cost of Goods Sold		1940		$                           7.00	$         13,580.00
			3860		$                           9.00	$               34,740
B	Cost of Goods Sold		5800	units		$               48,320
A-B	Ending Inventory		4040	units		$            39,170.0

	LIFO
A	Total Units Available for sale			9840		$               87,490
	Units Sold			5800
	Ending Inventory Units			4040
	Valuation
	Cost of Goods Sold		2810		$                         10.00	28,100.00
			2990		$                           9.00	26,910.00
B	Cost of Goods Sold		5800	units		$         55,010.00
A-B	Ending Inventory		4040	units		$         32,480.00

	Weighted Average
A	Total Units Available for sale			9840		$         87,490.00
	Units Sold			5800
	Ending Inventory Units			4040
	Valuation
	Cost of Goods Sold		5800		$                       8.8913	$         51,569.31
B	Cost of Goods Sold		5800	units		$         51,569.31
A-B	Ending Inventory		4040	units		$         35,920.69

Weighted Average Cost Per unit
Units		(A)	9840
Total Cost		(B)	$            87,490.00
Average Cost		(C=B/A)	$                       8.89

requirement 2:

	A	B	C=MIN(A,B)	D	E =C*D
ITEMS	Cost per unit	Net Realizable Value	Lower of Cost or NRV	Quantity	Inventory as of Dec 31, 2017
A	$                                         21.00	$                       24.00	$                 21.00	70	$                            1,470.00
B	$                                         49.00	$                       39.00	$                 39.00	100	$                            3,900.00
C	$                                         61.00	$                       57.00	$                 57.00	30	$                            1,710.00
D	$                                         39.00	$                       34.00	$                 34.00	90	$                            3,060.00
E	$                                         14.00	$                       19.00	$                 14.00	370	$                            5,180.00

End of answer.

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