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    amyjo0918's Avatar
    amyjo0918 Posts: 3, Reputation: 1
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    #1

    Jun 19, 2009, 05:40 PM
    Find the Average, FIFO, LIFO
    Began with 67 tents @ $18 each
    Purchases: Oct 4. 96 @ $20 = $1920
    Oct 19. 161 @ $22 = $3542
    Oct 25. 41@ $23 = $943
    Sold 319 on Oct 31. And ending inventory was 46 tents. The sales price of each tent was $51. Find Ending inventory and cost of goods sold with Average method, FIFO, LIFO?



    I have been working on this problem for an hour and just can't figure it out!! Please Help!:(
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #2

    Jun 21, 2009, 04:45 AM
    Cost of goods available for sale 349 units $ 7,611
    Ending Inventory 30 units
    Value at
    average cost 7611/349 x 30 = $654
    FIFO 30 x 23 = 690
    LIFO 30 x 18 = 540

    Cost of goods sold
    Average cost 7611-654= 6957
    FIFO 7611-690 = 6921
    LIFO 7611-540 = 7071
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #3

    Jun 28, 2009, 12:53 PM

    Cost of goods available is for sale is:
    Beginning inventory of (67 * price) + purchases of (96 * price), (161 * price), (41 * price) = 365 with a total price of $7611

    Ending inventory is: 365 - 319 units sold = 46units.
    Avg cost of ending inventory is: $7611/365 * 46 = $959.19
    COGS is: $7611 - 959.19 = $6651.81

    Fifo ending inventory is 41 units @$23 + 5 units @ $22 = $1053
    COGS is: $7611 - 1053 = $6558

    Lifo ending inventory is: 46 units @18 = $828
    COGS is: $7611 - 828 = $6783
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