Question

7 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 t: 11.11 points Unit Cost $4 Inventory, December 31, prior year For the current year! Purchase, March 21 Purchase, August 1 Inventory, December 31, current year 1,840 5,050 2.940 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.) Answer is complete but not entirely correct. FIFO LIFO Average Cost $ 28,740 $ 21.520 $ 24.508 $ 28,900 $ 36,120 32,797 Ending inventory Cost of goods sold

Answer 1

Ending inventory Cost of goods sold LIFO $ $ FIFO Average cost 21,160 $ 27,780 $ 24,528 37,080 $ 30,460 $ 33,712 LIFO Inwards Outwards unit unit cost cost unit unit cost cost Dec-31 4 Beginning inventory Purchase Purchase 1840 5050 7360 30300 Balance unit unit cost cost 1840 4 7360 5050 6 30300 2940 7 20580 9830 58240.0 Mar-21 6 2940 7 20580 Aug-01 Balance Sales * 7 20580 2940 2750 6 16500 Dec-31 Ending inventory 2300 6 13800 1840 4 7360 Balance 5690 37080 4140 21160

FIFO Dec-31 Mar-21 Aug-01 Balance Sales * Beginning inventory Purchase Purchase Inwards Outwards Balance unit unit cost cost unit unit cost cost unit unit cost cost 1840 4 7360 18401 41 7360 5050 6 30300 5050 61 30300 2940 7 20580 2940 7 20580 9830 58240.0 1840 4 7360 3850 61 23100 1200 6 7200 2940 7 20580 Dec-31 Ending inventory Balance 5690 30460 4140 27780 Average cost Inwards Outwards unit cost cost unit unit cost 1840 Beginning inventory Purchase Purchase cost unit 4 7360 6 30300 Balance unit unit cost cost 1840 4 7360 5050 6 30300 2940 7 20580 5050 2940 7 20580 Dec-31 Mar-21 Aug-01 Balance Sales * Dec-31 9830 5.92 58240.0 5690 5.925 33711.7 Ending inventory 4140 5.92 24528 Balance 5690 33711.7 4140 24528 Number of Unit Sold Total Unit Available Less: Closing inventory Sales 9830 -4140 5690