Please explain how to calculate the FIFO and LIFO for the below problem and to prepare the income statement for the FIFO, LIFO and Average cost.Problem: 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 1,990   $ 4   For the current year:           Purchase, March 21 5,130     6   Purchase, August 1 2,920     7     Inventory, December 31, current year 4,050             Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.)   My calculations are below.      Units Cost Per Unit Total Cost FIFO LIFO Average Cost Beginning inventory 1990 $                 4 $       7,960 $           7,960 $                 7,960 $             7,960 Purchases (March 21) 5130 $                 6 $     30,780 $         30,780 $               30,780 $           30,780 Purchases (August 1) 2920 $                 7 $     20,440 $         20,440 $               20,440 $           20,440 Goods Available for sale 10040 $             5.89 $     59,180 $         59,180 $               59,180 $           59,180 Ending Inventory 4050 $             5.89   $         20,440 $               30,780 $           23,872 Cost of goods Sold 5990 $             5.89   $         38,740 $               28,400 $           35,308 Calculation Avg Costs: Avg Costs = Goods Available for Sale / Number of Units Available for Sale = $59,180/ 10040 = $5.89= Avg costs * EI = $5.89 * 4050 = $23872CGS =  Goods Available for Sale - EI = $59180 - $23,872 = $35,308

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Please explain how to calculate the FIFO and LIFO for the below problem and to prepare the income statement for the FIFO, LIFO and Average cost.

Problem:

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 1,990   $ 4  
For the current year:          
Purchase, March 21 5,130     6  
Purchase, August 1 2,920     7  
  Inventory, December 31, current year 4,050        
 

 

Required:

Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.)

 

My calculations are below.   
  Units Cost Per Unit Total Cost FIFO LIFO Average Cost
Beginning inventory 1990 $                 4 $       7,960 $           7,960 $                 7,960 $             7,960
Purchases (March 21) 5130 $                 6 $     30,780 $         30,780 $               30,780 $           30,780
Purchases (August 1) 2920 $                 7 $     20,440 $         20,440 $               20,440 $           20,440
Goods Available for sale 10040 $             5.89 $     59,180 $         59,180 $               59,180 $           59,180
Ending Inventory 4050 $             5.89   $         20,440 $               30,780 $           23,872
Cost of goods Sold 5990 $             5.89   $         38,740 $               28,400 $           35,308

Calculation Avg Costs: 
Avg Costs = Goods Available for Sale / Number of Units Available for Sale
 = $59,180/ 10040 = $5.89
= Avg costs * EI = $5.89 * 4050 = $23872
CGS =  Goods Available for Sale - EI = $59180 - $23,872 = $35,308






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