Module 10 Homework
3
E7-5 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost
LO7-2
1.66 points
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1:
Units
Unit
Cost
Inventory, December 31, prior year
1,810
\$6
For the current year:
Purchase, March 21
5,180
8
Purchase, August 1
2,850
9
Inventory, December 31, current year
4,020
Required:
Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods.
Note: Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.
Ending inventory
FIFO
LIFO
Average Cost
Cost of goods sold