Answer:
FIFO
cost of the ending inventory = $15,680
cost of goods sold = $39,570
LIFO
cost of the ending inventory = $10,290
cost of goods sold = $44,960
Average Cost Method
cost of the ending inventory = $13,883.37
cost of goods sold = $41,336.76
Explanation:
The cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost are calculated as follows :
Step 1 : Determine the Number of units sold
Number of units sold = Total units available for sale - Ending units
= 390 units - 98 units
= 292 units
Step 2 : Determine the Number of units in inventory
Number of units in inventory = 98 units (given)
Step 3 : Use the appropriate principles to calculate required values
<u>FIFO</u>
cost of the ending inventory = 98 x $160 = $15,680
cost of goods sold = 130 units x $105 + 162 units x $160 = $39,570
<u>LIFO</u>
cost of the ending inventory = 98 x $105 = $10,290
cost of goods sold = 260 units x $160 + 32 units x $105 = $44,960
<u>Average Cost Method</u>
Unit Cost = ($13,650 + $41,600) ÷ 390 units = $141.667
therefore,
cost of the ending inventory = 98 x $141.667 = $13,883.37
cost of goods sold = 292 units x $141.667 = $41,336.76
