Determine cost of goods sold and ending inventory, using FIFO, LIFO, and average-cost with analysis.([LO 2](http://edugen.wileyplus.com/edugen/courses/crs8363/ebook/c06/weygandt9781118875056c06xlinks.xform?id=c06-sec-0015))Sekhon Company had a beginni

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Determine cost of goods sold and ending inventory, using FIFO, LIFO, and average-cost with analysis.

Sekhon Company had a beginning inventory on January 1 of 160 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made.


Mar. 15	400 units at $23	Sept. 4	330 units at $26
July 20	250 units at $24	Dec. 2	100 units at $29

1,000 units were sold. Sekhon Company uses a periodic inventory system.

Instructions

(a)

Determine the cost of goods available for sale.

(b)

Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods.

(2) Cost of goods sold:


FIFO	$23,340
LIFO	$24,840
Average	$24,097

(c)

Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost of goods sold for the income statement?