Kiser Company reports the following for the month of June. Date Explanation Unit

Question

Kiser Company reports the following for the month of June.


Date Explanation Units Unit Cost Total Cost
June 1 Inventory 165 $7 $1,155
June 12 Purchase 495 8 3,960
June 23 Purchase 660 9 5,940
June 30 Inventory 264





Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average cost. (For average cost, round unit cost to 3 decimal places, e.g. 2.575. Round final answers to 0 decimal places, e.g. 5,775.)

FIFO LIFO Average Cost
Ending Inventory
Cost of Goods Sold

Explanation / Answer

June 1 Beginning Inventory     165    $7 $1,155
June 12 Purchase                    495   $8    $3,960
June 23 Purchase                    660   $9    $5,940
Total Inventory available      1,320         $11,055
June 30 Ending Inventory        264
Units sold                            1,056

                                   FIFO      LIFO      Average Cost
Ending Inventory        $2,3761    $1,9472     $2,2113
Cost of Goods Sold     $8,6791    $9,1082       $8,8443
                   
1FIFO
Ending Inventory                    264 x $9 = $2,376
COGS      $1,155 + $3,960 + (396 x $9) = $8,679
OR 11,055 - $2,376 = $8,679

2LIFO
Ending Inventory    165 x $7   = $1,155
(264 - 165) x $8                    =    $792
Total Ending Inventory              $1,947
COGS
(495 - 99 ) x $8            = $3,168
660 x $9                      = $5,940
Total                               $9,108
OR             $11,055 - $1,947 = $9,108

3Average Cost
  11,055 / 1,320 = $8.375 per unit
Ending Inventory        264 x $8.375   = $2,211
Cost of goods sold   1,056 x $8.375   = $8,844

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