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Periodic inventory system.

INVENTORY types of inventory valuation.
Elston Company had a beginning inventory of 200 units at a cost of $12 per unit on August 1. During the month, the following purchases and sales were made.

Purchases Sales
August 4 250 units at $13 August 7 150 units
August 15 350 units at $15 August 11 100 units
August 28 200 units at $14 August 17 250 units
August 24 200 units

Instructions
Determine ending inventory and cost of goods sold under (a) average cost, (b) FIFO, and (c) LIFO.

(a) Average cost:
Ending inventory = $____________; cost of goods sold = $_____________.

(b) FIFO:
Ending inventory = $_____________; cost of goods sold = $____________.

(c) LIFO:
Ending inventory = $_____________; cost of goods sold = $____________.

Solution Preview

INVENTORY types of inventory valuation.
Elston Company had a beginning inventory of 200 units at a cost of $12 per unit on August 1. During the month, the following purchases and sales were made.

Purchases Sales
August 4 250 units at $13 August 7 150 units
August 15 350 units at $15 August 11 100 units
August 28 200 units at $14 August 17 250 units
August 24 200 units

Elston uses a periodic inventory system.

Instructions
Determine ending inventory and cost of goods sold under (a) average cost, (b) FIFO, and (c) LIFO.

Purchases Sales Balance
August 1 200 units at $12 200 units
August 4 250 units at $13 450 units
August 7 150 units 300 units
August 11 100 units 200 units
August 15 350 units at $15 550 units
August 17 250 units 300 units
August 24 200 units 100 units
August 28 200 units at $14 300 ...

Solution Summary

This solution is comprised of a detailed explanation to determine ending inventory and cost of goods sold under (a) average cost, (b) FIFO, and (c) LIFO.

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