Eggers Company reports the following for the month of June.
Date Explanation Units Unit Cost Total Cost
June 1 Inventory 120 $5 $ 600
12 Purchases 370 6 2,220
23 Purchases 200 7 1,400
30 Inventory 230
Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e.g. 125.)
1 Answer
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June 1 Inventory 120 $5 $ 600
12 Purchases 370 6 2,220
23 Purchases 200 7 1,400
= 690 units available for sale
= $4,220
FIFO
Ending Inventory
(200 x $7) + (30 x $6) = $1,580
COGS
4,220 - 1,580 = $2,640
LIFO
Ending Inventory
(120 x $5) + (110 x $6) = $1,260
COGS
4,220 - 1,260 = $2,960
Average Cost
4,220 / 690 = $6.12 avg. cost per unit
Ending Inventory
230 x 6.12 = $1,408
COGS
4,220 - 1,408 = $2,812
