Nittany 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: Units Inventory, December 31, prior year 2,000 Unit Cost $5 For the current year: Purchase, March 21 5,000 6 Purchase, August 1 3,000 8 Inventory, December 31, current year 4,000 Required: Compute ending Inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. Ending inventory Cost of goods sold FIFO LIFO Average Cost
Nittany 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: Units Inventory, December 31, prior year 2,000 Unit Cost $5 For the current year: Purchase, March 21 5,000 6 Purchase, August 1 3,000 8 Inventory, December 31, current year 4,000 Required: Compute ending Inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. Ending inventory Cost of goods sold FIFO LIFO Average Cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nittany 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:
Units
Inventory, December 31, prior year
2,000
Unit Cost
$5
For the current year:
Purchase, March 21
5,000
6
Purchase, August 1
3,000
8
Inventory, December 31, current year 4,000
Required:
Compute ending Inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods.
Ending inventory
Cost of goods sold
FIFO
LIFO
Average Cost
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