Show computations to value the ending inventory and the cost of goods sold using the FIFO method if 90 units were sold and 10 units remain on hand at December 31.

Date Explanation Units available for sale Unit Cost Total Cost
Dec. 1 Inventory 30 $100 $ 3,000
Dec. 12 Purchases 50 $103 $ 5,150
Dec. 25 Purchases 20 $99 $ 1,980
  Total 100   $10,130

 

Instructions

 

1. Show computations to value the ending inventory and the cost of goods sold using the FIFO method if 90 units were sold and 10 units remain on hand at December 31. (2 marks)

2. Show computations to value the ending inventory and the cost of goods sold using the LIFO method if 90 units were sold and 10 units remain on hand at December 31. (2 marks)

3. Show computations to value the ending inventory and the cost of goods sold using the Average weight method if 90 units were sold and 10 units remain on hand at December 31

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