Answer:
W/A FIFO LIFO
COGS: $66,528 $59,600 $72,400
EI: $52,272 $59,200 $46,400
Explanation:
Beginning 1,000 units at $20 each = 20,000
Purchases:
April: 1,800 at 22 = 39,600
August: 800 at 25 = 20,000
December: 1,400 at 28 = 39,200
Total Units: 5,000 Cost of goods available: 118,800
<u>Sales</u>: 400 + 1,600 + 800 = 2,800
February + July + October
<em>Ending Inventory:</em> 5,000 - 2,800 = 2,200
<u>Weigthed average:</u>
goods available / total units: 118,800 / 5,000 = 23.76 ocost per unit.
COGS: 2,800 x $23.76 = $ 66,528
EI: 2,200 x $23.76 = $ 52,272
<u>FIFO:</u>
first units are COGS and last units are Ending Inventory:
we take from the top of the table to get the COGS:
1,000 units at $20 = 20,000
1,800 units at $22 =<u> 39,600 </u>
COGS: 59,600
Ending Inventory: good available - COGS
118,800 - 59,600 = 59,200
<u>LIFO:</u>
first units are ending inventory the company sales the last units:
we take from the bottom of the table to get the COGS
December: 1,400 at 28 = 39,200
August: 800 at 25 = 20,000
April: 600 at 22 =<u> 13,200 </u>
COGS: 72,400
EI: 118,800 - 72,400 = 46,400