Answer:
Using the respective methods: Ending Inventory // COGS
W/A 2,585.75 // 10,549.25
FIFO 2,620 // 10,515
LIFO 2,539 // 10,596
Explanation:
Sales: 102 units
Sept. 1 Inventory 12 units $100 $ 1,200
Sept. 12 Purchases 45 units $103 $ 4,635
Sept. 19 Purchases 50 units $104 $ 5,200
Sept. 26 Purchases 20 units $105 $ 2,100
Available for sale 127 units $ 13, 135
Ending Inventory 127 - 102 = 25 units
COGS is calculated by taking the cost of goods minus the units left in ending inventory.
Weighted average:
$13,135 / 127 units = 103.42519685 = 103.43 cost per unit
Ending Inventory: 25 units x $ 103.43 = $ 2,585.75
COGS: 13,135 - 2,585.75 = 10,549.25
FIFO
First sold, last remaining items in inventory
20 x 105 = 2,100 September 26th
5 x 104 = 520 September 19th
Remaining inventory 2,620
COGS 13,135 - 2,620 = 10,515
LIFO
Last sold, first remaining in inventory
12 x 100 = 1,200 September 1st
13 x 103 = 1,339 September 12th
Remaining inventory 2,539
COGS 13,135 - 2,620 = 10,596
