for product 1 2000 8 6090 4120 2960 31 and final answers to

for product 1 2,000 $8 6,090 4,120 2,960 31 and final answers to nearest whole dollar amount.) FIFO LIFO

Solution

Cost of Goods available for sale = 2,000 * $8 + 6,090 * $7 + 4,120 * $5
Cost of Goods available for sale = $79,230

Number of units available for sale = 2,000 + 6,090 + 4,120
Number of units available for sale = 12,210

Cost per unit = Cost of Goods available for sale / Number of units available for sale
Cost per unit = $79,230 / 12,210
Cost per unit = $6.4889

FIFO:

Ending Inventory = 2,960 * $5
Ending Inventory = $14,800

Cost of Goods sold = Cost of Goods available for sale - Ending Inventory
Cost of Goods sold = $79,230 - $14,800
Cost of Goods sold = $64,430

LIFO:

Ending Inventory = 2,000 * $8 + 960 * $7
Ending Inventory = $22,720

Cost of Goods sold = Cost of Goods available for sale - Ending Inventory
Cost of Goods sold = $79,230 - $22,720
Cost of Goods sold = $56,510

Average Cost:

Ending Inventory = 2,960 * $6.4889
Ending Inventory = $19,207

Cost of Goods sold = Cost of Goods available for sale - Ending Inventory
Cost of Goods sold = $79,230 - $19,207
Cost of Goods sold = $60,023