Suggested languages for you:

Q29PGA_4

Expert-verified
Found in: Page 367

### Horngren'S Financial And Managerial Accounting

Book edition 6th
Author(s) Tracie L. Miller-Nobles, Brenda L. Mattison
Pages 992 pages
ISBN 9780134486833

# Accounting for inventory using the perpetual inventory system—FIFO, LIFO, and weighted-average, and comparing FIFO, LIFO, and weighted-average Steel Mill began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: Units Unit Cost Unit Sales PriceAug. 3 Sale 45$ 858 Purchase 90 $5421 Sale 85 8830 Purchase 15 58Requirements4. Determine the company’s cost of goods sold for August using FIFO, LIFO, and weighted-average inventory costing methods. The COGs under FIFO, LIO, and average cost methods are -$6070, $6165, and$6,080 respectively.

See the step by step solution

## Step-by-Step-SolutionStep 1: Cost of goods sold

The cost of goods sold is the cost of issuing stock valued under the four methods namely – FIFO, LIFO, Average cost, and specific identification method. These methods match the issuing stock’s price with the older, most recent, or on average cost.

## Step 2: Computed Cost of goods sold under the three methods

The cost of goods sold or each method has been computed in the previous subparts. The list of COGS under the three methods is as follows –

 Method COGS FIFO $6,070 LIFO$6,165 Weighted Average Method \$6,080