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Homework answers / question archive / year, it purchased three identical inventory items at different times
year, it purchased three identical inventory items at different times. The first unit cost $850, the second cost $950, and the third $800. Two of the three items were sold during the year.
Cost od good sold
Ending inventory
LIFO
FIFO
Weighted average
Computation of the cost of goods sold and ending inventory using LIFO method:-
Cost of goods sold = $800 + $950
= $1,750
Ending inventory = $850
Computation of the cost of goods sold and ending inventory using FIFO method:-
Cost of goods sold = $850 + $950
= $1,800
Ending inventory = $800
Computation of the cost of goods sold and ending inventory using weighted average cost method:-
Average cost per unit = ($850 + $950 + $800) / 3
= $2,600 / 3
= $866.67
Cost of goods sold = $866.67 * 2
= $1,733.33
Ending inventory = $866.67
