Daniel Company uses a periodic inventory system. Data for the current year: begi

Question

Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,040 units at $35; purchases, 7,880 units at $37; expenses (excluding income taxes), $193,600; ending inventory per physical count at December 31, current year, 1,680 units; sales, 8,240 units; sales price per unit, $78; and average income tax rate, 36 percent. value: 10.00 points Required information Required 1. Compute cost of goods sold and prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Round your final answers to nearest whole dollar. Do not round your intermediate calculations.) Costing Metho Cost of Goods Sold Average os Units FIFO LIFO inning in Purchases Goods availabl for sale Ending invento Cost of s sold Income StatementFIFO LIFO Average

Explanation / Answer

*Ending Inventory Computation :

FIFO : 1,680 units x $37 = $62,160

LIFO : 1,680 units x $35 = $58,800

Average Cost : $362,960 / 9920 = $36.5887 per unit

1,680 units x $36.5887 = $61,469

*Cost of Goods Sold computations :

FIFO : (2,040 units x $35) + (6,200 units x $37) = $300,800

LIFO : (7,880 units x $37) + (360 units x $35) = $304,160

Average : 8,240 units x $36.5887 = $301,491

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Cost of Goods Sold Units FIFO LIFO Average Cost Beginning Inventory 2040 $71,400 $71,400 $71,400 Purchases 7880 $291,560 $291,560 $291,560 Goods available for sale 9920 $362,960 $362,960 $362,960 Ending Inventory 1680 $62,160 $58,800 $61,469 Cost of Goods Sold 8240 $300,800 $304,160 $301,491

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