“Inventory Costing Methods: Calculating Ending Inventory, Cost of Goods Sold, and Gross Profit for AL Hukair Company”

Question: AL Hukairr company uses a periodic inventory system. The beginning balance of inventory and the purchases made by AL Hukair during the month of December are given below:
Date
Description
Units
Unit cost
Total cost
January 15
Beginning inventory
500
$3.90
$ 1,950
February 20
Inventory purchased
450
$ 3.80
$ 1,710
April 25
Inventory purchased
780
$ 2.80
$ 2,184
June 30
Inventory purchased
920
$ 3.75
$ 3,450
Total
2,650
$ 9,294
The AL Hukair Company sold 1,500 units during the year at 6 $ each.
Required: Calculate the Ending Inventory, cost of goods sold and Gross Profit under the following inventory costing methods:
1. First in, first out (FIFO) method
2. Last in, first out (LIFO) method
3. Average cost method