Exercise 2. Weighted Average, FIFO and LIFO Methods: During October, the following activity in inventory took place under a perpetual inventory system. However, since the only sale took place after all purchases had been made, the calculation of inventory amounts are the same as if the periodic inventory system were applied since the periodic system assumes all sales took place after all purchases have been made, even if in reality some sales occurred before subsequent purchases. October Quantity Unit Cost Beginning Inventory 8 $50 12 Purchase 10 S60 25 Purchase 11 $70 28 Sale 26 (Layer) Unit Cost UNITS FOR EACH LAYER FIFO LIFO COGS EI COGS EI Units Available October 1 Beginning Inventory 00 $50 S 12 25 S60 10 11 $70 Purchase Purchase Sub-total Weighted average cost S S s S 27 31 Sold Ending inventory On the next determine the amounts asked for: a. WEIGHTED AVERAGE: Weighted- Average Cost Units Dollar Amount Cost of goods sold S = Ending inventory 5 rounded b. FIFO: COGS ENDING INVENTORY Cost Layers Units Dollar Amount Units Dollar Amount $50 $ $ $60 $ $ $70 $ S Total $ s c. LIFO: COGS ENDING INVENTORY Cost Layers Units Dollar Amount Units Dollar Amount $50 $ $ $60 $ S $70 S S $ Total s