4.Periodic and Perpetual SystemsCalculating Ending Inventory and Cost of Sales Using Average Cost (Moving Average), FIFO, and LIFO

Undew Inc.s inventory records showed the following data for an item it sells regularly.

Date	Units	Unit Cost
Jan. 1 Inventory (beg.)	4,800	$10.00
Jan. 3 Purchases	43,200	$10.40
Jan. 7 Sales (at $26 per unit)	16,800
Jan. 20 Purchases	14,400	$11.00
Jan. 22 Sales (at $27 per unit)	38,400
Jan. 30 Purchases	7,200	$12.00

a. Assuming that Undew maintains a periodic inventory system, compute ending inventory and cost of goods sold for the month ending January 31 using (1) average cost, (2) FIFO, and (3) LIFO. b. Assuming that Undew maintains a perpetual inventory system, compute ending inventory and cost of goods sold for the month ending January 31 using (1) moving average, (2) FIFO, and (3) LIFO.

(1) Average cost method (periodic)

Computation of Weighted Average Unit Cost
	Numerator		Denominator		Result
Unit cost				=

Note: Use the result EXACTLY as displayed above in the calculations below. Note: Do not use negative signs with any of your answers. Note: Round your final answers to the nearest whole dollar.

	Average Cost (Periodic)
	Cost of goods available for sale
	Ending Inventory
	Cost of goods sold

(2) FIFO Method (periodic) Note: Do not use negative signs with any of your answers.

FIFO Method (Periodic): Computation of Ending Inventory
	Units	Cost per Unit	Total Cost
Jan. 1		$10.00
Jan. 3		$10.40
Jan. 20		$11.00
Jan. 30		$12.00

FIFO (periodic)
Cost of goods available for sale
Ending Inventory
Cost of goods sold

(3) LIFO Method (periodic) Note: Do not use negative signs with any of your answers.

LIFO Method (Periodic): Computation of Ending Inventory
	Units	Cost per Unit	Total Cost
Jan. 1		$10.00
Jan. 3		$10.40
Jan. 20		$11.00
Jan. 30		$12.00

LIFO (periodic)
Cost of goods available for sale
Ending Inventory
Cost of goods sold

(1) Moving Average (perpetual) Note: Enter the answers for unit cost in dollars and cents, rounded to the nearest penny. Use the rounded amounts for later calculations. Note: Do not use negative signs with any of your answers.

		Purchases			Cost of Sales			Inventory Balance
			Unit	Total		Unit	Total		Unit	Total
	Date	Units	Cost	Cost	Units	Cost	Cost	Units	Cost	Cost
	January 1
	January 3
	January 7
	January 20
	January 22
	January 30

	Moving average (perpetual)
	Cost of goods available for sale
	Ending Inventory
	Cost of goods sold

(2) FIFO (perpetual) Note: Do not use negative signs with any of your answers. Note: On each date, list the inventory units in chronological order based on their purchase date with beginning inventory, if any, listed first.

FIFO (Perpetual)
	Purchases			Cost of Sales			Inventory Balance
		Unit	Total		Unit	Total		Unit	Total
Date	Units	Cost	Cost	Units	Cost	Cost	Units	Cost	Cost
January 1
January 3
January 7
January 20
January 22
January 30

	FIFO (perpetual)
	Cost of goods available for sale
	Ending Inventory
	Cost of goods sold

3. LIFO (perpetual) Note: Do not use negative signs with any of your answers. Note: On each date, list the inventory units in chronological order based on their purchase date with beginning inventory, if any, listed first.

LIFO (perpetual)
	Purchases			Cost of Sales			Inventory Balance
		Unit	Total		Unit	Total		Unit	Total
Date	Units	Cost	Cost	Units	Cost	Cost	Units	Cost	Cost
January 1
January 3
January 13
January 20
January 22
January 30

	LIFO (perpetual)
	Cost of goods available for sale
	Ending Inventory
	Cost of goods sold