Question - During 2014, Smith & Co. sold 42,000 units of its product. The following units were on hand or purchased during the year:
|
|
Units
|
Cost per
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Total Cost
|
|
Beginning inventory (1/1/2016)
|
12,000
|
$15.10
|
$181,200
|
|
Purchase #1: (2/2/16)
|
16,000
|
$15.25
|
$244,000
|
|
Purchase #2: (6/15/16)
|
17,000
|
$15.50
|
$263,500
|
|
Purchase # 3: (10/31/16)
|
15,000
|
$15.75
|
$236,250
|
|
Total Available for Sale
|
60,000
|
|
$924,950
|
|
Less Sold
|
|
|
|
|
Ending inventory
|
|
|
|
Required - In the table above, fill in the number of units sold and the number of units in Ending Inventory. Calculate ending inventory and cost of goods sold for the next 3 questions.
1) If the company used FIFO method, what is the value of ending inventory and cost of goods sold?
2) If the company used LIFO method, what is the value of ending inventory and cost of goods sold?
3) If the company used the average cost method, what is the value of ending inventory and cost of goods sold?