Question

current attempt in progress
sunland company had 140 units in beginning inventory at a total cost of $11,200. the company purchased 280 units at a total cost of $30,800. at the end of the year, sunland had 75 units in ending inventory.
(a)
compute the cost of the ending inventory and the cost of goods sold under fifo, lifo, and average - cost. (round average - cost per unit and final answers to 0 decimal places, e.g. 1,250.)
\t\t\t\tfifo\tlifo\taverage - cost
the cost of the ending inventory\t$\t$\t$
the cost of goods sold\t$\t$\t$

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Explanation:

Step1: Calculate total units available

Total units = Beginning units + Purchased units
$140 + 280 = 420$ units

Step2: Calculate units sold

Units sold = Total units - Ending units
$420 - 75 = 345$ units

Step3: Calculate unit costs

Beginning inventory unit cost: $\frac{11200}{140} = 80$
Purchased unit cost: $\frac{30800}{280} = 110$

Step4: FIFO Ending Inventory

Ending inventory uses latest purchases
$75 \times 110 = 8250$

Step5: FIFO Cost of Goods Sold

COGS = Total cost - Ending inventory
Total cost = $11200 + 30800 = 42000$
$42000 - 8250 = 33750$

Step6: LIFO Ending Inventory

Ending inventory uses beginning inventory
$75 \times 80 = 6000$

Step7: LIFO Cost of Goods Sold

$42000 - 6000 = 36000$

Step8: Average cost per unit

Average cost = $\frac{42000}{420} = 100$

Step9: Average-cost Ending Inventory

$75 \times 100 = 7500$

Step10: Average-cost Cost of Goods Sold

$345 \times 100 = 34500$

Answer:

	FIFO	LIFO	Average-cost
The cost of goods sold	$\$33750$	$\$36000$	$\$34500$