Date Total costs $350/unit x 2 units = $700 $360/unit x 4 units = $1,440 8/1 8/5 8/15 8/26 8/31 Beginning inventory ($350/unit) Purchase 1 ($360/unit) Sales 1 Purchase 2 ($380/unit) Sales 2 Ending inventory Units 2 units 4 units (4 units) 12units (10 units) 4 units $380/unit x 12 units = $4,560 Total costs: $6,700 Total units available for sales = 2 + 4 + 12 units = 18 units Units sold = 4 + 10 units = 14 units Ending inventory = Total units available for sales - Units sold = 18 - 14 units = 4 units Calculate COGS and El for all four methods. Perpetual Inventory System 1. Perpetual Specific identification method: In Sales1, sold 1 unit from beginning inventory and 3 units from Purchase 1. In Sales 2, sold 1 unit from beginning inventory and 9 units from Purchase 2 3. Perpetual LIFO Total costs Date 8/1 8/5 8/15 $350/unit x 2 units = $700 $360/unit x 4 units = $1,440 Units 2 units 4 units (4 units) 12units (10 units) 4 units Beginning inventory ($350/unit) Purchase 1 ($360/unit) Sales 1 Purchase 2 ($380/unit) Sales 2 Ending inventory 8/26 $380/unit x 12 units = $4,560 8/31 Total costs: $6,700 2. Perpetual FIFO Total costs Date 8/1 8/5 8/15 8/26 8/31 $350/unit x 2 units = $700 $360/unit x 4 units = $1,440 Beginning inventory ($350/unit) Purchase 1 ($360/unit) Sales 1 Purchase 2 ($380/unit) Sales 2 Ending inventory Units 2 units 4 units (4 units) 12units (10 units) 4 units $380/unit x 12 units = $4,560 Total costs: $6,700 4. Perpetual Weighted average Total costs Date 8/1 8/5 Beginning inventory ($350/unit) Purchase 1 ($360/unit) Units 2 units 4 units $350/unit x 2 units = $700 $360/unit x 4 units = $1,440 8/15 Sales 1 (4 units) 8/26 Purchase 2 ($380/unit) 12units $380/unit x 12 units = $4,560 8/31 Sales 2 (10 units) Ending inventory 4 units Total costs: $6,700 Periodic Inventory System 1. Periodic Specific identification method: During August, there were 14 units are sold: 2 units from beginning inventory (1unit in Sales1 and another 1 unit in Sales 2), 3 units from Purchase 1 (Sales 1), and 9 units from Purchase 2 (Sales 2. Periodic FIFO (Sold 14 units in August) Total costs Date 8/1 8/5 8/26 Beginning inventory ($350/unit) Purchase 1 ($360/unit) Purchase 2 ($380/unit) Ending inventory Units 2 units 4 units 12units 4 units $350/unit x 2 units = $700 $360/unit x 4 units = $1,440 $380/unit x 12 units = $4,560 Total costs: $6,700 3. Periodic LIFO (Sold 14 units in August) Total costs Date 8/1 8/5 8/26 Beginning inventory ($350/unit) Purchase 1 ($360/unit) Purchase 2 ($380/unit) Ending inventory Units 2 units 4 units 12units 4 units $350/unit x 2 units = $700 $360/unit x 4 units = $1,440 $380/unit x 12 units = $4,560 Total costs: $6,700 4. Weighted average (Sold 14 units in August) Total costs Date 8/1 8/5 8/26 Beginning inventory ($350/unit) Purchase 1 ($360/unit) Purchase 2 ($380/unit) Ending inventory Units 2 units 4 units 12units 4 units $350/unit x 2 units = $700 $360/unit x 4 units = $1,440 $380/unit x 12 units = $4,560 Total costs: $6,700