Exercise 6-63 (Appendix 6B) Inventory Costing Methods: Periodic Inventory System (Appendices 6B)

The inventory accounting records for Lee Enterprises contained the following data:

Required:

1. Calculate the cost of ending inventory and the cost of goods sold using the FIFO, LIFO, and average cost methods. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)

	FIFO	LIFO	Average Cost
Cost of ending inventory	$	$	$
Cost of goods sold	$	$	$

2. Conceptual Connection: Compare the ending inventory and cost of goods sold computed under all three methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?

The input in the box below will not be automatically graded, but may be reviewed and considered by your instructor.

Beginning inventory Purchase 1, Feb. 26 Sale 1, March 9 Purchase 2, June 14 Sale 2, Sept. 22 1,400 units at $12 each 2,400 units at $16 each 2,300 units at $27 each 2,200 units at $20 each 1,900 units at $29 each