Question

Calculate the cost of goods sold and ending inventory for Emergicares' bandages orders using FIFO, LIFO, and average cost. There are 34 units in ending inventory. a. FIFO Cost of Goods Sold = $X; Ending Inventory = $Y b. LIFO Cost of Goods Sold = $P; Ending Inventory = $Q c. Average Cost of Goods Sold = $R; Ending Inventory = $S d. FIFO Cost of Goods Sold = $M; Ending Inventory = $N

Answer 1

The calculation of cost of goods sold (COGS) and ending inventory requires specific inventory and sales data, which are not provided. Once available, COGS and ending inventory can be calculated using FIFO, LIFO, and average cost methods.

Step-by-step explanation:

The student's question asks for the calculation of the cost of goods sold (COGS) and ending inventory values using three different inventory valuation methods: FIFO (First In, First Out), LIFO (Last In, First Out), and average cost method. Unfortunately, without specific data regarding the number of bandages ordered, the prices at which they were purchased, and the total number of bandages sold, it is impossible to provide an exact numerical answer.

Here are the general formulas for the calculations, which can be applied if the transaction details were to be made available:

• FIFO assumes that the oldest inventory items are sold first. Thus, COGS is calculated based on the prices of the oldest units acquired, while the ending inventory is based on the prices of the most recently acquired units.
• LIFO assumes that the newest inventory items are sold first. The COGS is determined using the prices of the most recently acquired units, and the ending inventory is based on the oldest units' prices.
• The average cost method calculates COGS and ending inventory by averaging the costs of all units available for sale during the period and assigning this average cost to both COGS and the units remaining in inventory.

Without the specific purchase and sales data for Emergicares' bandages, we cannot calculate the exact dollar amounts for X, Y, P, Q, R, S, M, and N in the provided question. However, these principles guide how to apply each inventory method once the data is available.