Computing Cost of Sales and Ending Inventory: FIFO, Average

3/20/23, 5:15 PMHomework 4 https://mybusinesscourse.com/platform/mod/quiz/review.php?attempt=7735893&cmid=381080&page=21/1Question3 CorrectMark 6.00 out of 6.00 Computing Cost of Sales and Ending Inventory Stocken Company has the following financial records for the current period: UnitsUnit cost Beginning inventory100$49 Purchases#165045 #255041 #320039 Ending inventory at the end of this period is 350 units. Compute the ending inventory and the cost of goods sold for the current period using (a) first- in, first-out, (b) average cost, and (c) last-in, first-out. FIFOAverage costLIFO Cost of goods soldEnding inventory13,95015,05016,150 50,550$49,450$48,350 $Solution UnitsUnit costTotal Beginning inventory100$49=$4,900 Purchases#165045=29,250 #255041=22,550 #320039=7,800 Cost of goods available for sale 1,500$64,500 a. First-in, first-out UnitsUnit costTotal 200$39=$7,800 15041=6,150 Ending inventory350$13,950 Cost of goods available for sale$64,500 Less: Ending inventory13,950 Cost of goods sold $50,550 b. Average cost Cost of Goods Available for Sale/Total Units Available for Sale = $64,500/ 1,500 = $43 Ending Inventory = 350 units x $43 =$15,050 Cost of goods available for sale$64,500 Less: Ending inventory15,050 Cost of goods sold $49,450 c. Last-in, first-out UnitsUnit costTotal 100$49=$4,900 25045=11,250 Ending Inventory350 $16,150 Cost of goods available for sale$64,500 Less: Ending inventory16,150 Cost of goods sold$48,350 Correct Marks for this submission: 6.00/6.00.