Hamilton Company uses a periodic inventory system At the end

Hamilton 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	2,000		$	5
For the current year:
Purchase, March 21	6,000			4
Purchase, August 1	4,000			2
Inventory, December 31, current year	3,000

Solution

units unit cost total inventory ,December 31 2,000 5 10000 for the current year purchases ,march 21 6,000 4 24000 purchase,august 1 4,000 2 8000 total 12,000 42000 Average cost per unit = 42000/12000 3.5 cost of goods sold = 12000 units - 3000 units 9000 units Average cost ending inventory     = 3.5*3000 10500 cost of goods sold = 3.5*9000 31500 FIFO ending inventory = 3000*2= 6000 cost of goods sold = 2000*5    +     6000*4    + 1000*2 = 36000 LIFO ending inventory   =2000*5 + 1000*4 = 14,000 cost of goods sold = 5000*4 + 4000*2 = 28,000 FIFO LIFO Average Ending inventory 6,000 14,000 10,500 cost of goods sold 36,000 28,000 31,500