### Periodic Inventory System: Larkspur, Inc.Larkspur, Inc. uses a periodic inventory system and provides the following data for June:| Date | Explanation | Units | Unit Cost | Total Cost ||-------|-------------|-------|-----------|------------|| June 1 | Inventory | 130 | $5 | $650 || 12 | Purchase | 340 | $6 | $2,040 || 23 | Purchase | 200 | $7 | $1,400 || 30 | Inventory | 203 | | |#### Inventory Valuation MethodsThe task is to compute the cost of the ending inventory and the cost of goods sold (COGS) using the FIFO, LIFO, and average cost methods. The cost per unit is rounded to three decimal places, and final answers to zero decimal places.**(a) Calculations**- **FIFO (First-In, First-Out)** - Cost of the ending inventory: $1,640 - Cost of goods sold: $2,630- **LIFO (Last-In, First-Out)** - Cost of the ending inventory: $1,310 - Cost of goods sold: $2,960- **Average Cost** - Cost of the ending inventory: $1,464 - Cost of goods sold: $2,806**Note:** The previous answer submitted was incorrect. Adjust your calculations accordingly.

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Answered: Compute the cost of the ending…

Business

Accounting

Compute the cost of the ending inventory and the cost of goods sold under FIFÓ, LIFÓ, and average-cost.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

### Periodic Inventory System: Larkspur, Inc.

Larkspur, Inc. uses a periodic inventory system and provides the following data for June:

| Date | Explanation | Units | Unit Cost | Total Cost |
|-------|-------------|-------|-----------|------------|
| June 1 | Inventory | 130 | $5 | $650 |
| 12 | Purchase | 340 | $6 | $2,040 |
| 23 | Purchase | 200 | $7 | $1,400 |
| 30 | Inventory | 203 | | |

#### Inventory Valuation Methods

The task is to compute the cost of the ending inventory and the cost of goods sold (COGS) using the FIFO, LIFO, and average cost methods. The cost per unit is rounded to three decimal places, and final answers to zero decimal places.

**(a) Calculations**

- **FIFO (First-In, First-Out)**
- Cost of the ending inventory: $1,640
- Cost of goods sold: $2,630

- **LIFO (Last-In, First-Out)**
- Cost of the ending inventory: $1,310
- Cost of goods sold: $2,960

- **Average Cost**
- Cost of the ending inventory: $1,464
- Cost of goods sold: $2,806

**Note:** The previous answer submitted was incorrect. Adjust your calculations accordingly.

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