Hamilton 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: Inventory, December 31, prior year Purchase, March 21 For the current year: Purchase, August 1 Inventory, December 31, current year Required: Units 2,000 Unit Cost $ 5 6,000 4,000 4 2 3,000 Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. FIFO Ending inventory Cost of goods sold LIFO Average Cost
Hamilton 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: Inventory, December 31, prior year Purchase, March 21 For the current year: Purchase, August 1 Inventory, December 31, current year Required: Units 2,000 Unit Cost $ 5 6,000 4,000 4 2 3,000 Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. FIFO Ending inventory Cost of goods sold LIFO Average Cost
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Hamilton 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:
Inventory, December 31, prior year
Purchase, March 21
For the current year:
Purchase, August 1
Inventory, December 31, current year
Required:
Units
2,000
Unit Cost
$ 5
6,000
4,000
4
2
3,000
Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods.
Ending inventory
Cost of goods sold
FIFO
LIFO
Average Cost
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VIEWStep 3: Working for cost of goods sold and ending inventory using LIFO method
VIEWStep 4: Working for cost of goods sold and ending inventory using weighted average method
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