The following data is available Sales 2400 units Beginning i

The following data is available:

Sales: 2,400 units

Beginning inventory: 600 units @ $8.80

Purchases in chronological order: 1,200 units @ $8.40
800 units @ $8.80
1,000 units @ $9.00

Calculate COGs under the following cost flow assumptions:

A) Weighted average
B) FIFO

C) LIFO

Assume net income using the weighted average cost flow assumption was $12,800. Calculate the net income under FIFO and LIF)0.

Solution

Begning Inventory 600*8.8                                                   5,280 Purchases 1200*8.40                                                10,080 800*8.80                                                   7,040 1000*9                                                   9,000                                                31,400 Weighted Average Ending Inventory(1200) 1200*9                                                10,800 Unit Cost 31400/3600                                                           9 Cost of goods sold 2400*9                                                21,600 FIFO Ending Inventory(1200) 200*8.80                                                   1,760 1000*9                                                   9,000                                                10,760 Cost of goods sold 31400-10760                                                20,640 LIFO Ending Inventory(1200) 600*8.80                                                   5,280 600*8.4                                                   5,040                                                10,320 Cost of goods sold 31400-10320                                                21,080