Vaughn Company, which uses a periodic inventory system, had a beginning inventory on May 1, of 400 units of Product A at a cost of $7 per unit. During May, the following purchases and sales were made.
Purchases Sales
May 6 375 units at $9 May 4 275 units
14 250 units at $10 8 300 units
21 300 units at $11 22 400 units
28 425 units at $13 24 225 units
1,350 1,200
Instructions:
Compute the May 31 ending inventory and May cost of goods sold under (a) Average Cost, (b) FIFO, and (c) LIFO. Provide appropriate supporting calculations.
(a) Average – Ending Inventory = $_________; Cost of Goods Sold = $_________.
(b) FIFO – Ending Inventory = $_________; Cost of Goods Sold = $_________.
(c) LIFO – Ending Inventory = $_________; Cost of Goods Sold = $_________.