Answer:
Method Ending Inventory // COGS
W/A 2,585.75 // 10,549.25
FIFO 2,620 // 10,515
LIFO 2,539 // 10,596
Explanation:
sales: 102 units
Sept. 1 Inventory 12 units $100 $ 1,200
Sept. 12 Purchases 45 units $103 $ 4,635
Sept. 19 Purchases 50 units $104 $ 5,200
<u>Sept. 26 Purchases 20 units $105 $ 2, 100</u>
Availalbe for sale 127 units $ 13, 135
Ending Invenotry 127 - 102 = 25 units
COGS will be calcualte as the difference between the cost of goods and the untis at ending inventory.
<u>Weigthed average:</u>
$13,135 / 127 units = 103,42519685 = 103.43 cost per unit
Ending Inventory: 25 units x $ 103.43 = $ 2.585,75
COGS : 13,135 - 2,585.75 = 10,549,25
<u>FIFO</u>
We sold the first, the last are ending invenotry
20 x 105 = 2,100 september 26th
5 x 104 = 520 september 19th
Ending 2,620
COGS 13,135 - 2,620 = 10,515
<u>LIFO</u>
We sold the last, the first are ending inventory
12 x 100 = 1,200 September 1st
13 x 103 = 1,339 September 12th
Ending 2,539
COGS 13,135 - 2,620 = 10,596
