The following inventory information is available for Watercress Company: Units U
ID: 2443219 • Letter: T
Question
The following inventory information is available for Watercress Company:
Units
Unit cost
Total cost
Beginning inventory
1,000
$72
$ 72,000
Feb. 14 purchase
2,000
84
168,000
Feb. 26 purchase
2,000
90
180,000
Ending inventory
500
Required:
Fill in the table below (assume periodic inventory method).
FIFO
LIFO
Weighted average
Ending inventory
Cost of goods sold
Units
Unit cost
Total cost
Beginning inventory
1,000
$72
$ 72,000
Feb. 14 purchase
2,000
84
168,000
Feb. 26 purchase
2,000
90
180,000
Ending inventory
500
Explanation / Answer
FIFO
LIFO
Weighted average
Ending inventory
500*$90 = $45,000
500*$72 =$36,000
500*$84 =$42,000
Cost of goods sold
$375,000
$384,000
$378,000
FIFO LIFO Weighted
FIFO
LIFO
Weighted average
Ending inventory
500*$90 = $45,000
500*$72 =$36,000
500*$84 =$42,000
Cost of goods sold
$375,000
$384,000
$378,000
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