Inventory Costing Methods The following data are for the Evans Company, which sells just one product: Units Unit Cost Beginning inventory January 1 200 $40 Purchases: February 11 500 $56 May 18 400 $64 October 23 100 $80 Sales March 1 July 1 400 400 Calculate the value of ending inventory and cost of goods sold using the periodic method and (a) first-in, first- out, (b) last-in, first-out, and (c) weighted-average cost method. Cost of goods sold Ending inventory a. FIFO $ 38,400 $ 12,800 b. LIFO $ 33,600 $ 11,200 c. Weighted average $ 39,464 $ 9,866
Inventory Costing Methods The following data are for the Evans Company, which sells just one product: Units Unit Cost Beginning inventory January 1 200 $40 Purchases: February 11 500 $56 May 18 400 $64 October 23 100 $80 Sales March 1 July 1 400 400 Calculate the value of ending inventory and cost of goods sold using the periodic method and (a) first-in, first- out, (b) last-in, first-out, and (c) weighted-average cost method. Cost of goods sold Ending inventory a. FIFO $ 38,400 $ 12,800 b. LIFO $ 33,600 $ 11,200 c. Weighted average $ 39,464 $ 9,866
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Inventory Costing Methods
The following data are for the Evans Company, which sells just one product:
Units Unit Cost
Beginning inventory January 1
200
$40
Purchases:
February 11
500
$56
May 18
400
$64
October 23
100
$80
Sales
March 1
July 1
400
400
Calculate the value of ending inventory and cost of goods sold using the periodic method and (a) first-in, first-
out, (b) last-in, first-out, and (c) weighted-average cost method.
Cost of goods sold Ending inventory
a. FIFO
$
38,400 $
12,800
b. LIFO
$
33,600 $
11,200
c. Weighted average
$
39,464 $
9,866
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