Sheffield Company had 100 units in beginning inventory at a total cost of $12,000. The company purchased 200 units at a total cost of $30,000. At the end of the year, Sheffield had 71 units in ending inventory.
Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,250.)

FIFO

Cost of goods sold = $19,350 + 12,000 = $31,350.

Ending inventory = 71 × $150 = $10,650

LIFO

Total cost of goods sold = $3480 + $30,000 = $33,480

Cost of ending inventory = $120 × 71 = $8520

Average-cost inventory system:

Cost of goods sold = 229 × 140 = $32,060

Ending inventory = 71 × $140 = $9,940

Explanation:

The FIFO inventory system means first in, first out. It means that the first purchased goods at the first to be sold.

The cost of goods sold under FIFO :

Total amount of goods sold × cost of goods

Total amount of goods sold = Total available goods - ending inventory

300 - 71 = 229

It is assumed that the first 100 goods sold is taken from the beginning inventory which costs  $12,000.

The remaining 129 goods is taken from the goods purchased.

To get the unit cost of the goods purchased =  $30,000 / 200 = $150

Total cost of 129 inventory = $150 × 129 = $19,350

Cost of goods sold = $19,350 + 12,000 = $31,350.

Ending inventory = 71 × $150 = $10,650

The LIFO mwans last in, first out. This inventory system assumes that It is the last purchased inventory that is first to be sold

Total amount of goods sold = Total available goods - ending inventory

300 - 71 = 229

It is assumed that the first 200 are sold from the later acquired inventory. This costs  $30,000.

The remaining 29, would be sold from the beginning inventory.

Unit cost of beginning inventory = $12,000 / 100 = $120

Total cost of 29 inventory sold = $120 × 29 = $3480

Total cost of goods sold = $3480 + $30,000 = $33,480

Cost of ending inventory = $120 × 71 = $8520

Average cost inventory system = Total cost of inventory/ total units of inventory

($30,000 + $12,000) / (100 + 200) = $140

Cost of goods sold = 229 × 140 = $32,060

Ending inventory = 71 × $140 = $9,940

I hope my answer helps you

200 greeting cards must be sold in order to achieve the breakeven. By seeling 200 greeting cards the company will be in position of no profit and loss position.

Explanation:

The breakeven point could be found from the following formula:

Breakeven Point = Fixed Cost / Contribution per unit Eq 1

Here

Contribution per unit = Selling Price - Variable Cost

Contribution per unit = $3 - $1 = $2 per unit

Putting values in the equation 1, we have:

Breakeven Point = $400 / $2 per unit = 200 units