Problem:
Compute FIFO, LIFO and Average. Please give detailed explanations on how/why each answer was found.
Eddings Company had a beginning inventory of 400 units of Product XNA at a cost of $8.00 per unit. During the year, purchases were:
Feb. 20 600 units @ $9 Aug. 12 300 units @ $11
May 5 500 units @ $10 Dec. 8 200 units @ $12
Eddings Company uses a periodic inventory system. Sales totaled 1,500 units.
Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average). (Round the unit cost in the average cost method to 2 decimal places. Use the rounded amounts for subsequent calculations. Round final answers to 0 decimal places.)
FIFO LIFO Average Cost
Ending Inventory
Cost of Goods Sold