Answer and Explanation:
1. The computation of the ending inventory and the cost of goods sold using the periodic FIFO method is shown below;
<u> </u><u>FIFO Ending Inventory </u>
<u>Description # of Units Cost per Unit Total Cost </u>
Jan. 20 Purchase 33 $30 $990
Jan. 15 Purchase 11 $22 $242
Total 44 $1,232
<u> FIFO Cost of goods sold </u>
<u>Description # of Units Cost per Unit Total Cost </u>
Jan. 20 Purchase 20 $20 $400
Jan. 15 Purchase 16 $22 $352
Total 36 $752
2. The computation of the ending inventory and the cost of goods sold using the periodic LIFO method is shown below;
<u> FIFO Ending Inventory </u>
<u>Description # of Units Cost per Unit Total Cost </u>
Jan. 20 Purchase 20 $20 $400
Jan. 15 Purchase 24 $22 $528
Total 44 $928
<u> FIFO Cost of goods sold </u>
<u>Description # of Units Cost per Unit Total Cost </u>
Jan. 20 Purchase 33 $30 $990
Jan. 15 Purchase 3 $22 $66
Total 44 $1,056
3. The computation of the cost per unit using the Periodic Weighted Average method is
= Cost of goods sold ÷ Number of units
= $1,984 ÷ 80
= $24.80 per unit
<u>Weighted average Ending inventory</u>
<u> # of Units Cost per Unit Total Cost </u>
44 $24.80 $1,091
<u>Weighted average Cost of goods sold </u>
<u> # of Units Cost per Unit Total Cost </u>
36 $24.80 $893
4. The computation of the completed cost of goods sold by applying the three methods is
Particulars FIFO LIFO Weighted average
Beginning Inventory $400 $400 $400
Add: Purchases $1,584 $1,584 $1,584
Goods Available for Sale $1,984 $1,984 $1,984
Less: Ending Inventory -$1,232 -$928 -$1,091
Cost of Goods Sold $752 $1,056 $893