Use the Following Information to Calculate Cost of Goods Sold

question 56

Essay

Use the following information to calculate cost of goods sold under each of three methods: (a)FIFO,(b)LIFO,and (c)average-cost.Assume the periodic inventory system is used.(Show your work.)
$\begin{array}{llll}\text { Apr. } &1 & \text { Beginning inventory } & 90 \text { units @ } \$ 40 \\& 8 & \text { Sales } & 70 \text { units } \\&17 & \text { Purchases } & 150 \text { units @, \$42 }\\&24 & \text { Sales } & 110 \text { units } \\&30 & \text { Purchases } & 60 \text { units @\$44 } \end{array}$

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Definitions:

Dollar-Weighted Returns

A technique for determining the yield of an investment by considering both the magnitude and timing of the cash inflows and outflows associated with it.

Geometric Returns

The average rate of return per period on an investment, calculated by compounding the returns over time.

Excess Returns

The return on an investment minus the return on a benchmark, indicating the performance of the investment relative to the market.

Historical Standard Deviation

A statistical measure that quantifies the variability or dispersion of a set of past data points.