00:01
In this question, you gave us inventory data of beginning inventory of 30 units at a cost each of $112.
00:09
30 times 112 tells me that this is a total of $3 ,360.
00:16
Then you've given a purchase of 70 units at $122 each.
00:21
Multiplying those two out, i find the total price.
00:25
10 units at $128 each, $1 ,280, and 90 units at a cost of $130 each.
00:34
Let's total each line so we have it for later.
00:38
The total amount of units is 30 plus 70 plus 10 plus 90, 200 units.
00:45
And now i'm going to add up the column on the right to find the total costs.
00:49
When i add that up, i get that the total cost is $24 ,980.
00:58
And you've given that we have units in ending inventory of 60.
01:06
That means that we must have sold 140 units because we had 200 available for sale.
01:15
And lastly, you've asked me to find the cost of goods sold dollar amount and the ending inventory dollar amount under three different cost methods.
01:26
The first being fifo, first in, first out.
01:32
The second being lifo, last in, first out.
01:36
And the third being average cost.
01:38
Now you can either start with cost of goods sold or start with ending inventory.
01:44
It's easier to do whichever one's the smallest.
01:46
So we're going to calculate ending inventory first, and then we'll be able to back in to cost of goods sold easier because they'll all add up to this total amount...