Chapter 6 Inventory Costing Homework Problems Determine the cost of goods sold for each of the following problems using FIFO, LIFO and Average Cost methods. Problem 1 Costing data for Spring Company Units Unit Cost 120 $10 Date January 1 March 15 July 30 Nov. 22 Total Cost $1,200 $6,000 500 12 600 14 Explanation Beginning inventory Purchases Purchases Purchases Total units available for sale Total units in ending inventory Units sold $8,400 $6,000 400 15 1,620 $21,600 450 1,170 Problem 2 Costing data for Summer Company Units Unit Cost 150 $15 Date January 1 March 15 July 30 Nov. 22 Total Cost $2,250 $3,200 $5,400 200 16 300 18 Explanation Beginning inventory Purchases Purchases Purchases Total units available for sale Total units in ending inventory Units sold 150 20 $3,000 800 $13,850 175 625 |Chapter 6 Inventory Costing Check Your Understanding Determine the cost of goods sold for each of the following problems using FIFO, LIFO and Average Cost methods. Problem 1 Costing data for Oakland Company Date January 1 Units Unit Cost 80 $18 March 15 120 20 Total Cost $1,440 $2,400 $5,000 $2,600 $11,440 200 25 Explanation Beginning inventory Purchases Purchases Purchases Total units available for sale Total units in ending inventory Units sold July 30 Nov. 22 100 26 500 120 380 Problem 2 Costing data for Davis Company Date Units Unit Cost Total Cost 60 $30 January 1 March 15 150 32 180 35 July 30 Nov. 22 Explanation Beginning inventory Purchases Purchases Purchases Total units available for sale Total units in ending inventory Units sold $1,800 $4,800 $6,300 $2,880 $15,780 80 36 470 100 370