Singh Company sold 75 units @ $350 each on October 31, Year 2. The following information is also available: Beginning inventory25 units @ $175Feb. 2 purchase20 units @ $180June 15 purchase45 units @ $200Oct. 1 purchase30 units @ $220Required:a) Determine the amount of cost of goods sold using: 1) FIFO2) LIFO 3) Weighted Averageb) Determine the amount of ending inventory using: 1) FIFO 2) LIFO 3) Weighted Average

Question

What will be an ideal response?

Answer 1

a) (1) $13,975
a) (2) $15,600
Cost of goods sold using FIFO and LIFO:a) (3) $14,735
b) (1) $9,600
b) (2) $7,975
b) (3) $8,841

a) (1) and (2) 
Cost of goods sold using FIFO and LIFO:


a) (3) 
Cost of goods sold using weighted average:
Average cost per unit = Cost of goods available for sale of [(25 × $175) + (20 × $180) + (45 × $200) + (30 × $220)] ÷ Units available for sale of 120 units = $196.46 per unit
Cost of goods sold = Average cost of $196.46 × 75 units = $14,735
b) (1) and (2)
Ending inventory using FIFO and LIFO:



b) (3) 
Ending inventory using weighted average:
Average cost of $196.46 per unit × 45 units = $8,841