Answer:
Total cost of goods sold(FIFO) = $59,500
Cost of ending inventory(FIFO) = $17,000
Total cost of goods sold(LIFO) = $67,150
Cost of ending inventory(LIFO) = $9,350
Total cost of goods sold(AVERAGE COST) = $62,050
Cost of ending inventory(AVERAGE COST) = $14,450
Explanation:
Given the following ;
Units in beginning inventory = 150
Total cost of beginning inventory = $16,500
Units in Purchased inventory = 300
Total cost of purchased inventory = $60,000
Units in ending inventory = 85
Therefore;
Cost per unit in beginning inventory = $16,500÷150 = $110
Cost per unit in purchased
inventory = $60,000÷300 = $200
Total unit sold = 150+300-85 = 365units
Using FIFO(First-in First-out) :
Here, price associated with first inventory is first adopted in selling until goods in the inventory is exhausted, then move on to the next inventory.
Total units sold = 365
Starting from first inventory ;
$110 × 150 = $16500
365 - 150 = 215 units
$200 × 215 = $43,000
Total cost of goods sold (FIFO) = $43,000 + $16,500 = $59,500
Cost of ending inventory (FIFO) = 85 × $200 = $17,000
Using LIFO(Last-in First-out)
Here, price associated with last inventory is first adopted in selling until goods in inventory is exhausted.
Total unit sold = 365
Starting from last inventory;
$200 × 300 = $60,000
365 - 300 = 65 units
$110 × 65 = $7150
Total cost of goods sold (LIFO) =
$60,000 + $7,150 = $67,150
Cost of ending Inventory (LIFO) =
85 × $110 = $9,350
Using average cost;
Here, Total cost of goods available for sale is divided by the total unit of goods.
Total cost of goods available for sale = $16,500 + $60,000 =$76,500
Total unit of goods = 150+300 = 450units
Average cost per unit = $76,500÷450 = $170
Total cost of goods sold = 365 × $170 = $62,050
Cost of ending inventory = 85 × $170 = $14,450
