Eggers Company reports the following for the month of June.

Eggers Company reports the following for the month of June.

Date Explanation Units Unit Cost Total Cost

June 1 Inventory 120 $5 $ 600

12 Purchases 370 6 2,220

23 Purchases 200 7 1,400

30 Inventory 230

Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e.g. 125.)

1 Answer

  • June 1 Inventory 120 $5 $ 600

    12 Purchases 370 6 2,220

    23 Purchases 200 7 1,400

    = 690 units available for sale

    = $4,220

    FIFO

    Ending Inventory

    (200 x $7) + (30 x $6) = $1,580

    COGS

    4,220 - 1,580 = $2,640

    LIFO

    Ending Inventory

    (120 x $5) + (110 x $6) = $1,260

    COGS

    4,220 - 1,260 = $2,960

    Average Cost

    4,220 / 690 = $6.12 avg. cost per unit

    Ending Inventory

    230 x 6.12 = $1,408

    COGS

    4,220 - 1,408 = $2,812

    Source(s): Accounting Fan

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