Answer:
Skysong, Inc.
a. The cost of goods sold under FIFO
= $816
b. The cost of goods sold under LIFO
= $1,068
c. Average unit cost
= $18.90
d. The cost of goods sold under average-cost
= $945
Explanation:
a) Data and Calculations:
Date Transaction Units Unit Cost Total
Jan. 1 Beginning inventory 9 $12 $108
May 5, Purchases 28 $16 448
July 16 Purchases 19 $20 380
Dec. 7, Purchases 24 $24 576
Dec. 31 Total 80 $1,512
Dec. 31 Ending inventory 30
Dec. 31 Sales 50
a. The cost of goods sold under FIFO:
Jan. 1 Beginning inventory 9 $12 $108
May 5, Purchases 28 $16 448
July 16 Purchases 13 $20 260
Cost of goods sold $816
b. The cost of goods sold under LIFO:
May 5, Purchases 7 $16 112
July 16 Purchases 19 $20 380
Dec. 7, Purchases 24 $24 576
Cost of goods sold $1,068
c. Average unit cost:
= Total cost/Total units
= $18.9 ($1,512/80)
d. The cost of goods sold under average-cost:
= $945 (50 * $18.90)
