Final answer:
Using the FIFO method, the cost of goods sold would be $17,640 and the ending inventory would be $12,960. Using the LIFO method, the cost of goods sold would be $19,160 and the ending inventory would be $2,040. Using the weighted average method, the cost of goods sold would be $12,239.10 and the ending inventory would be $8,159.40.
Step-by-step explanation:
To determine the amount of product costs allocated to cost of goods sold and ending inventory, we need to use the FIFO, LIFO, and weighted average methods.
In the FIFO method, the cost of goods sold will be calculated using the costs of the oldest inventory first. So, the product costs allocated to cost of goods sold would be 100 units x $60 (beginning inventory) + 150 units x $68 (first purchase) + 20 units x $72 (part of the second purchase) = $6,000 + $10,200 + $1,440 = $17,640. The ending inventory would be the remaining 180 units x $72 (remaining part of the second purchase) = $12,960.
In the LIFO method, the cost of goods sold will be calculated using the costs of the newest inventory first. So, the product costs allocated to cost of goods sold would be 200 units x $72 (second purchase) + 70 units x $68 (part of the first purchase) = $14,400 + $4,760 = $19,160. The ending inventory would be the remaining 30 units x $68 (remaining part of the first purchase) = $2,040.
In the weighted average method, the cost of goods sold and the ending inventory are calculated based on the average cost per unit. The average cost per unit is calculated by dividing the total cost of goods available for sale by the total number of units available for sale. So, the average cost per unit would be ($6,000 + $10,200 + $14,400 + $14,400)/450 = $45.33. The product costs allocated to cost of goods sold would be 270 units x $45.33 = $12,239.10. The ending inventory would be 180 units x $45.33 = $8,159.40.