Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1:

Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1:

	Units	Unit Cost
Inventory, December 31, prior year	1,810		$	6
For the current year:
Purchase, March 21	5,110			8
Purchase, August 1	2,910			9
Inventory, December 31, current year	4,190

Required:

Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.)

Explanation:

	Units	FIFO	LIFO	Average Cost
Cost of goods sold:
Beginning inventory ($6)	1,810	$10,860	$10,860	$10,860
Purchases (March 21) ($8)	5,110	40,880	40,880	40,880
(August 1) ($9)	2,910	26,190	26,190	26,190
Goods available for sale	9,830	77,930	77,930	77,930
Ending inventory*	4,190	36,430	29,900	33,227
Cost of goods sold**	5,640	$41,500	$48,030	$44,703

*Ending inventory computations:

FIFO: (2,910 units @ $9) + (1,280 units @ $8) = $36,430.

LIFO: (1,810 units @ $6) + (2,380 units @ $8) = $29,900.

Average: [(1,810 units @ $6) + (5,110 units @ $8) + (2,910 units @ $9)]

= $77,930 ÷ 9,830 units = $7.93 per unit.

4,190 units @ $7.93 = $33,227.

**Cost of goods sold computations:

FIFO: (1,810 units @ $6) + (3,830 units @ $8) = $41,500.

LIFO: (2,910 units @ $9) + (2,730 units @ $8) = $48,030.

Average: [(1,810 units @ $6) + (5,110 units @ $8) + (2,910 units @ $9)]

= $77,930 ÷ 9,830 units = $7.93 per unit.

5,640 units @ $7.93 = $44,703.