Nittany Company uses a periodic inventory system. At the end of theannual accounting period, December 31 of the current year, theaccounting records provided the following information for product 1:Inventory, December 31, prior yearFor the current year:Purchase, March 21Purchase, August 1Inventory, December 31, current yearRequired:UnitUnitsCost1,850$ 35,0402,930564,140Compute ending inventory and cost of goods sold for the current yearunder FIFO, LIFO, and average cost inventory costing methods.Note: Round "Average cost per unit" to 2 decimal places and finalanswers to nearest whole dollar amount.Ending inventoryCost of goods soldFIFOLIFOAverage Cost

The periodic inventory system is used for valuing inventory.Under this method the inventory is…

Unit Units Cost Inventory, December 31, prior year 1,850 $ 3 For the current year: Purchase, March 21 5,040 Purchase, August 1 2,930 56 Inventory, December 31, current year 4,140 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods.

Unit Units Cost Inventory, December 31, prior year 1,850 $ 3 For the current year: Purchase, March 21 5,040 Purchase, August 1 2,930 56 Inventory, December 31, current year 4,140 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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he following data are available for Sellco for the fiscal year ended on January 31, 2020: Sales 1,600 units Beginning inventory 500 units @ $ 4 Purchases, in chronological order 600 units @ $ 5 800 units @ $ 6 500 units @ $ 8 Required:a. Calculate cost of goods sold and ending inventory under the cost flow assumptions, FIFO, LIFO and weighted average (using a periodic inventory system): (Round unit cost to 2 decimal places.) b. Assume that net income using the weighted-average cost flow assumption is $80,000. Calculate net income under FIFO and LIFO. (Round unit cost to 2 decimal places.)
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