FINANCIAL ACCOUNTING
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Transcribed Image Text:E7-5 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost
LO7-2
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the
accounting records provided the following information for product 1:
Inventory, December 31, prior year
For the current year:
Purchase, March 21
Ending inventory
Cost of goods sold
$
$
FIFO
Purchase, August 1
Inventory, December 31, current year
Required:
Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods.
Note: Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.
40,010 $
66,270 $
LIFO
Units
1,910
5,010
2,910
4,010
26,190 $
51,540 $
Unit Cost
$6
Average Cost
8
9
45,782
77,514
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