Question

Computing Cost of Sales and Ending Inventory
Stocken Company has the following financial records for the current period.

	Units	Unit Cost
Beginning Inventory	100	$ 26
Purchases: #1	650	22
#2	550	18
#3	200	16

Ending inventory is 350 units. Compute the ending inventory and the cost of goods sold for the current period using (a) first-in, first out, (b) average cost, and (c) last-in, first out.

(a) First-in, first-out
Ending inventory	Answer
Cost of goods sold	Answer
(b) Average cost
Ending inventory	Answer
Cost of goods sold	Answer
(c) Last-in, first-out
Ending inventory	Answer
Cost of goods sold	Answer

Answer 1

			units	pu	total
	Beginning inventory		100	26	2600
	Purchase#1		650	22	14300
	purchase#2		550	18	9900
	purchase#3		200	16	3200
	total		1500		30000
a)	FIFO
	Ending inventory
	200*16+150*18
	5900
	cost of goods sold
	30,000-5,900
	24100
b)	LIFO
	ending inventory
	100*26+250*22
	8100
	cost of goods sold
	30,000-8100
	21900
c)	Average cost
	ending inventory
	30000/1500*350
	7000
	cost of goods sold
	30,000-7000
	23000