Periodic and Perpetual Systems —Calculating EndingInventory and Cost of Sales using Average Cost, Moving Average,FIFO, LIFO, and Dollar-Value LIFO
The inventory records of Mod Oil Company for January 2020 showedthe following data for an item of its merchandise for sale (assumethat the six transactions occurred in the order shown).
| Date | Units | Unit Cost | Total |
|---|
| Beginning inventory (Jan. 1) | 900 | $6.00 | $5,400 |
| Jan. 3 Purchases | 1,080 | 6.10 | 6,588 |
| Jan. 5 Sales (1,620 units) | | | |
| Jan. 10 Purchases | 1,080 | 6.20 | 6,696 |
| Jan. 20 Sales (900 units) | | | |
| Jan. 25 Purchases | 720 | 6.30 | 4,536 |
| Jan. 28 Sales (540 units) | | | |
| Total available for sale | 3,780 | | $23,220 |
Its ending inventory of 720 units can be specifically identifiedas follows: 180 units from the January 3 purchase, 90 units fromthe January 10 purchase, and 450 units from the January 25purchase.
Compute ending inventory and cost of goods sold for the monthended January 31 using the methods indicated below.
- Round your final answer to the nearest whole dollar.
- Do not round per unit costs in your calculations.
| e. Moving average (perpetual) | Answer | Answer |
| f. FIFO (perpetual) | Answer | Answer |
| g. LIFO (perpetual) | Answer | Answer |
| h. Dollar-value LIFO* | Answer | Answer |
*Assume that the beginning inventory is the base layer at a costof $6.00 per unit. The price index for
