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: Inventory, December 31, prior year. For the current year: Purchase, March 21 Ending inventory Cost of goods sold FIFO Units 1,980 LIFO 5,180 2,880 4,040 Purchase, August 1 Inventory, December 31, current year. 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. Unit Cost $5 Average Cost 7 8
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: Inventory, December 31, prior year. For the current year: Purchase, March 21 Ending inventory Cost of goods sold FIFO Units 1,980 LIFO 5,180 2,880 4,040 Purchase, August 1 Inventory, December 31, current year. 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. Unit Cost $5 Average Cost 7 8
Chapter1: Financial Statements And Business Decisions
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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:
Ending inventory
Cost of goods sold
Inventory, December 31, prior year
For the current year:
Purchase, March 21
Purchase, August 1
Inventory, December 31, current year
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.
FIFO
Units
1,980
LIFO
5,180
2,880
4,040
Unit
Cost
$5
Average Cost
7
8
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