Problem:
Smith 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
Smith uses a periodic inventory system.
Instructions: Determine ending inventory and cost of goods sold under (a) average cost, and (b) FIFO.
(a) Average cost:
Ending inventory = $____________; cost of goods sold = $_____________.
(b) FIFO:
Ending inventory = $_____________; cost of goods sold = $____________.