E7-5 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost LO7-2

Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1:

	Units	Unit Cost
Inventory, December 31, prior year	1,890		$	4
For the current year:
Purchase, March 21	5,080			6
Purchase, August 1	2,820			7
Inventory, December 31, current year	4,150

Part 1 required:

Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.)

Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2:

			Units			Unit Cost
Inventory, December 31, prior year				6,700			$	9
For the current year:
Purchase, March 5				18,700				7
Purchase, September 19				9,700				3
Sale ($26 each)				8,100
Sale ($28 each)				15,700
Operating expenses (excluding income tax expense)	$	397,000

E7-8 Part 1

Part 2 Required:

Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. (Loss amounts should be indicated with a minus sign.)

Part 3: Compute the difference between the pretax income and the ending inventory amounts for the two cases.

Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and ave (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar LIFO FIFO 73,900 Average Cost Ending inventory Cost of goods sold $ GIVOLY INC. Income Statement For the Year Ended December 31, current year Case A Case B FIFO LIFO Cost of goods sold: Goods available for sale 0 +0 Cost of goods sold Pretax income/loss