Periodic inventory systems Following is partial information

Periodic inventory systems

Following is partial information for the income statement of Audio Solutions Company under three dit Required: 1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. Average Cost FIFO LIFO Cost of goods sold Beginning inventory (395 units $27)$ 10,665$ 10,665$ 10,665 15,960 26,625 17,051 $ 9,574 Purchases (456 units @ $35) Goods available for sale Ending inventory (545 units) 15,960 26,625 15,960 26,625 Cost of goods sold

Solution

1 FIFO LIFO Average Cost Cost of goods sold Beginning Inventory (395 Units @ $27) $10,665 $10,665 $10,665 Purchase (456 units @ $35) $15,960 $15,960 $15,960 Goods available for sale $26,625 $26,625 $26,625 Ending Inventory (545 units) $18,363 $15,915 $17,051 Cost of goods sold $8,262 $10,710 $9,574 Notes Units cost Total FIFO Beginning Inventory                        89 $27 $2,403 Purchase                      456 $35 $15,960 Ending Inventory                      545 $18,363 LIFO Beginning Inventory                      395 $27 $10,665 Purchase                      150 $35 $5,250 Ending Inventory                      545 $15,915 2 FIFO LIFO Average Cost Sales Revenue $16,524 $16,524 $16,524 Cost of Goods Sold $8,262 $10,710 $9,574 Gross Profit $8,262 $5,814 $6,950 Expenses $1,540 $1,540 $1,540 Pretax Income $6,722 $4,274 $5,410