Chopin Co. sells product A. The beginning inventory for product A was 70 units @ $240 per unit. During the year, Chopin purchased 110 units of product A at $216 per unit. The company sold 140 units of product A @ $400 per unit at the end of the year. Required: Determine the amount of product cost that would be allocated to cost of goods sold and ending inventory using (1) FIFO, (2) LIFO, and (3) weighted average.
What will be an ideal response?
(1) FIFO:
Cost of goods sold = $31,920
Ending inventory = $8,640
(2) LIFO: Cost of goods sold = $30,960
Ending inventory = $9,600
(3) Weighted Average:
Cost of goods sold = $40,560
Ending inventory = $9,013
(1) FIFO
(2) | LIFO |
(3) | Weighted Average |
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