Prove the cost of goods sold calculations. (Round the weighted average cost per unit to 2 decimal places, eg. 52.75 and other answers to 0 decimal places, e.g. 5,275.)

### Proving the Cost of Goods Sold Calculations

#### FIFO Method:

1. **Units Sold**: 
\[ 95 \, \text{units (total available)} - 25 \, \text{units (ending inventory)} = 70 \, \text{units sold} \]

2. **Cost of Goods Sold Calculation**:
   - First, sell 33 units from April 1 inventory:
\[ 33 \, \text{units} \times \$9 = \$297 \]

   - Next, sell the remaining 37 units from April 12 purchases:
\[ 37 \, \text{units} \times \$12 = \$444 \]

   - Adding these amounts together gives the total COGS:
\[ \$297 + \$444 = \$741 \]

3. **Ending Inventory Calculation**:
   - Remaining units in April 12 purchases:
\[ 48 \, \text{units} - 37 \, \text{units} = 11 \, \text{units} \]
\[ 11 \, \text{units} \times \$12 = \$132 \]

   - All units from April 16 purchases:
\[ 14 \, \text{units} \times \$10 = \$140 \]

   - Adding these amounts together gives the total ending inventory value:
\[ \$132 + \$140 = \$272 \]

#### Weighted Average Cost Method:

1. **Average Cost per Unit Calculation**:
\[ \text{Average Cost per Unit} = \frac{\text{Total Cost}}{\text{Total Units}} = \frac{\$1,013}{95 \, \text{units}} \approx \$10.66 \]

2. **Cost of Goods Sold Calculation**:
   - Units sold = 70
\[ 70 \, \text{units} \times \$10.66 = \$746.20 \]
   - Rounded to 0 decimal places:
\[ \text{COGS} \approx \$746 \]

3. **Ending Inventory Calculation**:
   - Ending inventory = 25 units
\[ 25 \, \text{units} \times \$10.66 = \$266.50 \]
   - Rounded to 0 decimal places:
\[ \text{Ending Inventory} \approx \$267 \]

### Summary:

- **FIFO Method:**
  - Ending Inventory: $272
  - COGS: $741

- **Weighted Average Cost Method:**
  - Ending Inventory: $267
  - COGS: $746

Would you like more details or have any questions?

Here are 5 questions you might want to ask:
1. How do changes in inventory cost methods impact tax calculations?
2. What are some real-world scenarios where FIFO might be preferred over weighted average?
3. How does the periodic inventory system handle inventory shrinkage or theft?
4. Can you explain how to transition from a periodic to a perpetual inventory system?
5. How do businesses decide which inventory costing method to use?

**Tip:** When performing inventory calculations, always double-check unit counts and unit costs to ensure accuracy, especially when rounding is involved.

Learn how to prove the cost of goods sold (COGS) calculations using FIFO and weighted average methods with a detailed step-by-step solution. Understand how to calculate COGS, ending inventory, and average cost per unit, rounded to the specified decimal places. Suitable for professionals and learners in accounting and finance.

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