Answer:
FIFO : Ending Inventory = $7,920, Cost of Goods Sold = $17,060
LIFO : Ending Inventory = $7,020, Cost of Goods Sold = $17,960
AVCO : Ending Inventory = $7,494, Cost of Goods Sold = $17,486
Explanation:
FIFO
FIFO method assumes that the first goods received by the business will be the first ones to be delivered to the final customer.
Ending Inventory
Ending Inventory = physical units left × earliest price
= 60 units × $132
= $7,920
Cost of Goods Sold
Cost of Goods Sold : 30 units × $112 = $3,360
70 units × $122 = $8,540
30 units × $128 = $3,840
10 units × $132 = $1,320
Total = $17,060
LIFO
FIFO method assumes that the last last goods purchased are the first ones to be issued to the final customer.
Ending Inventory
Ending Inventory : 30 units × $112 = $3,360
30 units × $122 = $3,660
Total = $7,020
Cost of Goods Sold
Cost of Goods Sold : 70 units × $132 = $9,240
30 units × $128 = $3,840
40 units × $122 = $4,880
Total = $17,960
Weighted Average Cost Method (AVCO)
Recalculates the cost of goods held each time new delivery of goods is received. Issues are then priced out at this weighted average cost.
Unit Cost = Total Costs / Total units
= (30 units × $112 + 70 units × $122 + 30 units × $128 + 70 units × $132) / 200
= $124.90
Ending Inventory
Ending Inventory = units at hand × weighted unit price
= 60 units × $124.90
= $7,494
Cost of Goods Sold
Cost of Goods Sold = units sold × weighted unit price
= 140 units × $124.90
= $17,486
