The Lippert Company uses the periodic inventory system. The following July data

Question

The Lippert Company uses the periodic inventory system. The following July data are for an item in Lippert's inventory: Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Round your final answers to the nearest dollar. A. First-in, First-out: Ending Inventory Cost of Goods Sold: B. Last-in, first-out:Ending Inventory Cost of Goods Sold: C. Weighted-average cost: Ending Inventory Cost of Goods Sold

Explanation / Answer

FIFO

Inventory = 20*9+25*10 = 430

COGS = 30*8+30*9 = 510

LIFO

Inventory = 30*8+15*9 = 375

COGS = 25*10+35*9 = 565

Weighted average:

Inventory = (30*8+50*9+25*10)*45/105 = 402.86

COGS = (30*8+50*9+25*10)*60/105 = 537.14

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