Computing Cost of Sales and Ending Inventory Stocken Company

Computing Cost of Sales and Ending Inventory
Stocken Company has the following financial records for the current period.

Ending inventory is 350 units. Compute the ending inventory and the cost of goods sold for the current period using (a) first-in, first out, (b) average cost, and (c) last-in, first out.

	Units	Unit Cost
Beginning Inventory	100	$ 26
Purchases: #1	650	22
#2	550	18
#3	200	16

Solution

Units Unit Cost Total Beginning Inventory 100 26.00 2600 Purchases: #1 650 22.00 14300 #2 550 18.00 9900 #3 200 16.00 3200 Total Units Available 1500 30000 Less: Closing Inventory 350 Units Sold 1150 A FIFO: Units Sold 1150 In FIFO Method, First In Units are sold first Beginning Inventory 100 26.00 2600 Purchases: #1 650 22.00 14300 #2-(1150-100-650) 400 18.00 7200 Cost of Goods Sold 1150 24100 Ending Inventory 350 5900 (30000-24100) B Average Cost: Computation of Average Cost: A B B/A Total Units Available 1500 30000 20.00 Average Cost Cost of Goods Sold 1150 20.00 23000 Ending Inventory 350 20.00 7000 C LIFO: Units Sold 1150 In LIFO Method, Last In Units are sold first #3 200 16.00 3200 #2 550 18.00 9900 Purchases: #1-(1150-200-550) 400 22.00 8800 Cost of Goods Sold 1150 21900 Ending Inventory 350 8100 (30000-21900)