Problem - Cost flow assumptions-FIFO, LIFO, and weighted average using a periodic system - The following data are available for Sellco for the fiscal year ended on January 31, 2017:
Sales - 3,200 units
Beginning inventory - 1,000 units @ $8
Purchases, in chronological order - 1,200 units @ $10
1,600 units @ $12
800 units @ $16
Required:
a. Calculate cost of goods sold and ending inventory under the following cost flow assumptions (using a periodic inventory system):
1. FIFO.
2. LIFO.
3. Weighted average.
b. Assume that net income using the weighted-average cost flow assumption is $232,000. Calculate net income under FIFO and LIFO.