Allsigns Company uses a periodic inventory system. The company’s accounting records for the most popular item in inventory showed the following details:
(a) the cost of goods available for sale during 2015
(b) the cost of ending inventory at December 31, 2015
(c) the cost of sales for 2015, under each of the following inventory costing methods (show computations and round to the nearest dollar):
1. Weighted- average cost.
2. FIFO.
3. Specific identification, assuming that the company is permitted to use it and that two- fifths of the units sold on April 1, 2015, were selected from the beginning inventory and three- fifths were taken from the purchase of February 20, 2015. Assume that the sale of August 1, 2015, was selected from the purchase of June 30, 2015.
As a shareholder, which of these three methods would you prefer?

  • CreatedAugust 04, 2015
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