I'm not exactly sure how to find FIFO, LIFO, and average cost.

Accounting
Tutor: None Selected Time limit: 1 Day

Oct 8th, 2015

Thank you for the opportunity to help you with your question!

here i give you example you can get help from this.

Date Explanation Units Unit Cost Total Cost 
June 1 Inventory 120 $5 $ 600 
12 Purchases 370 6 2,220 
23 Purchases 200 7 1,400 
30 Inventory 230

Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e.g. 125.)


answer:

June 1 Inventory 120 $5 $ 600 
12 Purchases 370 6 2,220 
23 Purchases 200 7 1,400 
= 690 units available for sale 
= $4,220 

FIFO 
Ending Inventory 
(200 x $7) + (30 x $6) = $1,580 
COGS 
4,220 - 1,580 = $2,640 

LIFO 
Ending Inventory 
(120 x $5) + (110 x $6) = $1,260 
COGS 
4,220 - 1,260 = $2,960 

Average Cost 
4,220 / 690 = $6.12 avg. cost per unit 
Ending Inventory 
230 x 6.12 = $1,408 
COGS 
4,220 - 1,408 = $2,812

Source(s):Accounting Fan


Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 8th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Oct 8th, 2015
...
Oct 8th, 2015
Dec 4th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer