Using the data below, show the ending inventory and cost of goods sold for each of the methods shown in the table below, including the effects of the different prices at which the merchandise was purchased. For the specific-identification method, assume that the inventory consists of 30 units from the August 8 purchase and 25 units from the purchase of August 22. For all other methods, assume Vegan uses a periodic inventory system.

Aug. 1		Inventory	40		units @ $10 per unit	$ 400
8		Purchase	50		units @ $11 per unit	550
22		Purchase	35		units @ $12 per unit	420
Goods available for sale			125		units	$1,370
Aug. 15		Sale	45		units
28		Sale	25		units
Inventory, Aug. 31			55		units

In your calculations round average unit cost to the nearest cent and round your final answers to the nearest dollar.

	Periodic Inventory System
	Specific Identification Method	Average-Cost Method	FIFO Method	LIFO Method
Ending inventory:	$	$	$	$
Cost of goods sold:	$	$	$	$

Which method(s) would result in the lowest income taxes?
SelectLIFOFIFOAverage-Cost MethodSpecific Identification MethodItem 9

Answer rating: 100% (QA)

1 Average cost Units Amount Cost of goods available for sale 125 1370 Average cost per unit 1096 137... View the full answer