Answer:
date of purchase units cost per unit total cost
beginning inv. 6,000 $6 $36,000
January 10 5,000 $7 $35,000
January 18 6,000 $8 $48,000
total 17,000 $7 $119,000
date of sale units
January 5 3,000
January 12 2,000
January 24 4,000
ending inventory = 8,000 units
1. FIFO, periodic system.
ending inventory = (6,000 x $8) + (2,000 x $7) = $62,000
2. LIFO, periodic system.
ending inventory = (6,000 x $6) + (2,000 x $7) = $50,000
3. LIFO, perpetual system.
COGS = (3,000 x $6) + ((2,000 x $7) + (4,000 x $8) = $64,000
ending inventory = $119,000 - $64,000 = $55,000
4. Average cost, periodic system.
ending inventory = 8,000 x $7 = $56,000
5. Average cost, perpetual system.
COGS = (3,000 x $6) + ((2,000 x $6.625) + (4,000 x $7.3125) = $60,500
ending inventory = $119,000 - $60,500 = $58,500
