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    Calculating COGS and inventory values using different systems

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    Please assist with the Sellco Inc project below.

    The following data are available for Sellco for the fiscal year ended on January 31, 2014:

    Sales 810 units
    Beginning inventory 260 units @$ 3
    Purchases, in chronological order 330 units @$ 4
    400 units @$ 6
    190 units @$ 8

    (a) Calculate cost of goods sold and ending inventory amounts under the cost-flow assumptions, FIFO, LIFO and Weighted average (using a periodic inventory system): (Round your unit cost to 2 decimal places.)

    (b) Assume that net income using the weighted-average cost-flow assumption is $12,100. Calculate net income under FIFO and LIFO. (Round your unit cost to 2 decimal places.)

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    Solution Summary

    This solution shows how to calculate the cost of goods sold, ending inventory amounts, and net income of Sellco Inc. using different systems.

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