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 Unit Cost Inventory, December 31, prior year 1,980 $ 4 For the current year: Purchase, March 21 5,170 6 Purchase, August 1 2,880 7 Inventory, December 31, current year 4,110 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.
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 Unit Cost Inventory, December 31, prior year 1,980 $ 4 For the current year: Purchase, March 21 5,170 6 Purchase, August 1 2,880 7 Inventory, December 31, current year 4,110 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 | Unit Cost | |
|---|---|---|
| Inventory, December 31, prior year | 1,980 | $ 4 |
| For the current year: | ||
| Purchase, March 21 | 5,170 | 6 |
| Purchase, August 1 | 2,880 | 7 |
| Inventory, December 31, current year | 4,110 |
Required:
Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods.
Note: Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.
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Step 1: Introduce to FIFO, LIFO and Weighted average cost
VIEWStep 2: Working for sales unit
VIEWStep 3: Working for cost of goods sold and ending inventory using FIFO
VIEWStep 4: Working for cost of goods sold and ending inventory using LIFO
VIEWStep 5: Working for cost of goods sold and ending inventory using average cost
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