# Question & Answer: Hamilton Company uses a periodic inventory system. At the end of the annual accounting…..

Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2015, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, 2014 1,970 \$7 For the year 2015: Purchase, March 21 6,070 6 Purchase, August 1 4,140 4 Inventory, December 31, 2015 2,910

Hamilton Company uses a periodic inventory system. At the end of the annual accounting period December 31, 2015, the accounting records provided the following information for product 1 1,970 \$7 Inventory, December 31, 2014 For the year 2015 Purchase, March 21 Purchase, August 1 6,070 4,140 2,910 Inventory, December 31, 2015 Required Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. (Do not round intermediate calculations and round your final answers to the nearest dollar amount.) Average Cost FIFO LIFO Ending inventory Cost of goods sold 11,640 S 55,130 \$ 17,930\$ 47,340S 16,490 48,102 \$

Don't use plagiarized sources. Get Your Custom Essay on
Question & Answer: Hamilton Company uses a periodic inventory system. At the end of the annual accounting…..
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS \$13/PAGE
 Units Unit cost \$ Inventory,December 31,2014 1,970 7 13,790 Purchases, March 21 6,070 6 36,420 Purchases, August 1 4,140 4 16,560 Total 12,180 66,770 Inventory,December 31,2015 2,910 1 Under FIFO Method \$ Inventory,December 31,2015 ( 2,910 units x \$ 4 ) 11,640 Cost of goods sold ( \$ 66,770 – \$ 11,640) 55,130 2 Under LIFO Method \$ Inventory,December 31,2015 [( 1,970 units x \$ 7)+ (940 units x \$ 6)] 19,430 Cost of goods sold ( \$ 66,770 – \$ 19,430) 47,340 3 Under Average Cost Method \$ Inventory,December 31,2015 {(\$ 66,770/12,180 units )x 2,910 units} 15,947 Cost of goods sold ( \$ 66,770 – \$ 15,947) 50,823