Penn Company uses a periodic inventory system. At the end of the annual accounti
ID: 2558338 • Letter: P
Question
Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2015, the accounting records provided the following information for product 1:
Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.)
Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2015, the accounting records provided the following information for product 1:
Explanation / Answer
( Stock statement onFIFO basis) Purchase Cost of Goods Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 01/01/2015 1,800 $5.00 $9,000 21/03/2015 5,020 $7.00 $35,140.00 1,800 $5.00 $9,000 5,020 $7.00 $35,140 01/08/2015 2,900 $8.00 $23,200.00 1,800 $5.00 $9,000 5,020 $7.00 $35,140 2,900 $8.00 $23,200 1800 5 9000 1230 $7.00 $8,610.00 3,790 7 26530 2,900 $8.00 $23,200.00 Total 7,920 $23,200 5,590 $35,530 4,130 $31,810 ( Stock statement on LIFO basis) Purchase Cost of Goods Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 01/01/2015 1,800 $5.00 $9,000 21/03/2015 5,020 $7.00 $35,140.00 1,800 $5.00 $9,000 5,020 $7.00 $35,140 01/08/2015 2,900 $8.00 $23,200.00 1,800 $5.00 $9,000 5,020 $7.00 $35,140 2,900 $8.00 $23,200 2900 8 23200 1800 $5.00 $9,000.00 2,690 7 18830 2,330 $7.00 $16,310.00 Total 7,920 $23,200 5,590 $42,030 4,130 $25,310 ( Stock statement on Average basis) Purchase Cost of Goods Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 01/01/2015 1,800 $5.00 $9,000 21/03/2015 5,020 $7.00 $35,140.00 6,820 $6.47 $44,140 01/08/2015 2,900 $8.00 $23,200.00 9,720 $6.93 $67,340 5,590 $6.93 $38,738.70 4,130 $6.93 $28,601.30 Total 7,920 $23,200 5,590 $38,738.70 4,130 $28,601 FIFO LIFO Average Cost Ending Inventory $31,810 $25,310 $28,601 Cost of Goods Sold $35,530 $42,030 $38,739
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