Practice Problem 01 a, b1-b2, c

Kingbird, Inc. had a beginning inventory on January 1 of 330 units of Product 4-18-15 at a cost of $22 per unit. During the year, the following purchases were made.

Mar. 15

880 units

at

$25

Sept. 4

770 units

at

$28

July 20

550 units

at

$26

Dec. 2

220 units

at

$31

2,200 units were sold. Kingbird, Inc. uses a periodic inventory system.

Determine the cost of goods available for sale.

The cost of goods available for sale

$

Calculate average cost per unit. (Round answer to 2 decimal places, e.g. 2.23.)

Average cost per unit

$

Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and LIFO methods. (Round answers to 0 decimal places, e.g. 1,250.)

		FIFO		LIFO		AVERAGE-COST
The ending inventory		$		$		$
The cost of goods sold		$		$		$

Which cost flow method results in (1) the highest inventory amount for the balance sheet, and (2) the highest cost of goods sold for the income statement?

(1)		FIFOLIFOAverage-cost results in the highest inventory amount, $ .
(2)		FIFOLIFOAverage-cost produces the highest cost of goods sold, $ .