Penn Company uses a periodic inventory system. At the end of the annual accounti

Question

Penn 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 1,810 Inventory, December 31, prior year For the current year Purchase, March 21 Purchase, August 1 5,090 2,870 4,040 Inventory, December 31, current year Required: Compute ending inventory and cost of goods sold for the current year 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.) FIFO IFO Average Cost Ending inventory Cost of goods sold

Explanation / Answer

Average Cost Date Particulars Units   Cost Amount COGS 31-Dec Beginning Inventory                1,810.00                            6.00              10,860.00 21-Mar Purchase                5,090.00                            8.00              40,720.00 1-Aug Purchase                2,870.00                            9.00              25,830.00 Total                9,770.00                            7.92              77,410.00 COGS                5,730.00                            7.92              45,400.13 Ending Inventory                  4,040.00                            7.92              32,009.87 COGS              45,400.13 Ending Inventory              32,009.87 FIFO Date Particulars Units   Cost Amount COGS 31-Dec Beginning Inventory                1,810.00                            6.00              10,860.00 21-Mar Purchase                5,090.00                            8.00              40,720.00 1-Aug Purchase                2,870.00                            9.00              25,830.00 Total                9,770.00              77,410.00 COGS                5,730.00              42,220.00 1810*6+3920*8 Ending Inventory                  4,040.00              35,190.00 1170*8+2870*9 COGS              42,220.00 Ending Inventory              35,190.00 LIFO Date Particulars Units   Cost Amount COGS 31-Dec Beginning Inventory                1,810.00                            6.00              10,860.00 21-Mar Purchase                5,090.00                            8.00              40,720.00 1-Aug Purchase                2,870.00                            9.00              25,830.00 Total                9,770.00              77,410.00 COGS                5,730.00              48,710.00 2870*9+2860*8 Ending Inventory                  4,040.00              28,700.00 2230*8+1810*6 COGS              48,710.00 Ending Inventory              28,700.00

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