Question

DiPaolo’s inventory, purchases, and sales for March and April follow. The company closes its books at the end of each month. It uses the periodic inventory system.


Required
1. Compute the cost of the ending inventory on March 31 and April 30 using the average-cost method. In addition, determine cost of goods sold for March and April. (Round unit costs to the nearest cent.)
2. Compute the cost of the ending inventory on March 31 and April 30 using the FIFO method. Also determine cost of goods sold for March and April.
3. Compute the cost of the ending inventory on March 31 and April 30 using the LIFO method. Also determine cost of goods sold for March and April.
4. Do the cash flows from operations for March and April differ depending on which inventory costing method is used—average-cost, FIFO, or LIFO?Explain.


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  • CreatedMarch 26, 2014
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