Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginning inventory

100

units

@ $50.00 per unit

Mar.

5

Purchase

400

units

@ $55.00 per unit

Mar.

9

Sales

420

units

@ $85.00 per unit

Mar.

18

Purchase

120

units

@ $60.00 per unit

Mar.

25

Purchase

200

units

@ $62.00 per unit

Mar.

29

Sales

160

units

@ $95.00 per unit

Totals

820

units

580

units

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.

a) Periodic FIFO	Cost of Goods Available for Sale			Cost of Goods Sold			Ending Inventory
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beginning inventory	100	$50.00	$5,000	100	$50.00	$5,000	0	$50.00	$0
Purchases:
March 5	400	55.00	22,000	400	55.00	22,000	0	$55.00	0
March 18	120	60.00	7,200	80	60.00	4,800	40	60.00	2,400
March 25	200	62.00	12,400	0	62.00	0	200	62.00	12,400
Total	820		$46,600	580		$31,800	240		$14,800
b) Periodic LIFO	Cost of Goods Available for Sale			Cost of Goods Sold			Ending Inventory
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beginning inventory	100	$50.00	$5,000		$50.00	$0		$50.00	$0
Purchases:
March 5	400	55.00	22,000		55.00	0		55.00	0
March 18	120	60.00	7,200		60.00	0		60.00	0
March 25	200	62.00	12,400		62.00	0		62.00	0
Total	820		$46,600	0			0
c) Average Cost	Cost of Goods Available for Sale			Cost of Goods Sold			Ending Inventory
	# of units	Average Cost per unit	Cost of Goods Available for Sale	# of units sold	Average Cost per Unit	Cost of Goods Sold	# of units in ending inventory	Average Cost per unit	Ending Inventory
Beginning inventory	100		$5,000
Purchases:
March 5	400		22,000
March 18	120		7,200
March 25	200		12,400
Total	820		$46,600			$0			$0
d) Specific Identification	Cost of Goods Available for Sale			Cost of Goods Sold			Ending Inventory
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units in ending inventory	Cost per unit	Ending Inventory
Beginning inventory	100	$50.00	$5,000		$50.00	0		$50.00	$0
Purchases:
March 5	400	55.00	22,000		55.00	0		55.00	0
March 18	120	60.00	7,200		60.00	0		60.00	0
March 25	200	62.00	12,400		62.00	0		62.00	0
Total	820		$46,600	0			0