Answer:
August 2021:
Total Cost
Aug.1 Inventory on hand—3,200 units; cost $6.50 each. $ 20,800
8 August Purchased 16,000 units for $6.70 each. $ 107200
14 August Sold 12,800 units for $13.20 each. $ 165600
18 August Purchased 9,600 units for $6.80 each. $ 65,280
25 August Sold 11,800 units for $12.20 each. $ 143,960
28 August Purchased 5,200 units for $5.80 each. $ 30,160
31 August Inventory on hand—9,400 units.
FIFO Ending Inventory $58,720
5,200 units for $ 30,160
4,200 units for $6.80 each. $ 28,560
<em>FIFO Cost OF Goods Sold </em>
=$ 20,800 + $ 107,200+ $ 65,280+ $ 30,160 - $58,720= 223,400-$58,720 = <em>$ 164,720</em>
<em></em>
LIFO Ending Inventory $ 62340
3,200 units; cost $6.50 each. $ 20,800
6,200 units for $6.70 each = $ 41540
<em>LIFO Cost OF Goods Sold </em>
=$ 20,800 + $ 107,200+ $ 65,280+ $ 30,160 -$ 62340= 223,400-$ 62340=<em>$ 161,100</em>
<em></em>
<em>Average Cost Ending Inventory = $223,400/ 34,000= 6.570</em>
<em>9,400* 6.570= $ 61,763</em>
<em></em>
Average Cost of Goods Sold = (Total Units - Ending Unit )* 6.57=
= $ 223,380
