Answer:
Instructions are listed below
Explanation:
Giving the following information:
Computing Cost of Sales and Ending Inventory Stocken Company has the following financial records for the current period.
Units= 100
Unitary Cost Beginning Inventory $ 46
Purchases:
#1= 650units at $42
#2= 550units at $38
#3= 200units at $36
The ending inventory is 350 units.
A) First in, first out
First, we need to calculate the number of units sold:
Units sold= beginning inventory + purchases - ending inventory
Units sold= 100 + 1400 - 350= 1150
Ending inventory= 200 units at 36 + 150 at 38= 200*36+150*38=$12900
Cost of goods sold= 100*46 + 650* 42 + 400* 38=$47100
B) Average cost= total cost of units available for sale/ number of unit
Average cost= (100*46+650*42+550*38+200*36)/1500
Average cost= $40 unit
Ending inventory= 350*40= $14,000
COGS= 1150*40= $46,000
C) Last in, first out
Ending inventory= 100 units* 46 + 250 units*42= $15,100
COGS= 200* 36 + 550*38+ 400*42= $44,900
