DateExplanation Units Unit CostTotal CostSept. 1Inventory15$80$1,20012Purchase4545823,69019Purchas50844,20026Purchase20851,700Total130$10,790Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods.Ending inventory at September30$FIFO2,120$LIFO2,020$Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods.FIFOCost of goods sold$8,670$LIFO8,770$AVERAGE-COSTAVERAGE-COST8,7152,075

Name: DateExplanation Units Unit CostTotal CostSept. 1Inventory15$80$1,2001
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Description: DateExplanation Units Unit CostTotal CostSept. 1Inventory15$80$1,20012Purchase4545823,69019Purchas50844,20026Purchase20851,700Total130$10,790Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods.Ending inventory

Periodic Inventory :- periodic inventory system is a mechanism for mesuring cost of goods sold and…

Business

Accounting

Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 15 $80 $1,200 12 Purchase 45 82 3,690 19 Purchas 50 54 84 4,200 26 Purchase 20 85 1,700 Total 130 $10,790 Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods.

Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 15 $80 $1,200 12 Purchase 45 82 3,690 19 Purchas 50 54 84 4,200 26 Purchase 20 85 1,700 Total 130 $10,790 Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods.

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 Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Date
Explanation Units Unit Cost
Total Cost
Sept. 1
Inventory
15
$80
$1,200
12
Purchase
45
45
82
3,690
19
Purchas
50
84
4,200
26
Purchase
20
85
1,700
Total
130
$10,790
Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods.
Ending inventory at September
30
$
FIFO
2,120
$
LIFO
2,020
$
Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods.
FIFO
Cost of goods sold
$
8,670
$
LIFO
8,770
$
AVERAGE-COST
AVERAGE-COST
8,715
2,075

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