The inventory accounting records for Lee Enterprises contained the following
The inventory accounting records for Lee Enterprises contained the following data:
Beginning inventory .......... 1,400 units at $12 each
Purchase 1, Feb. 26 ......... 2,400 units at $16 each
Sale 1, March 9 ............ 2,300 units at $27 each
Purchase 2, June 14 ......... 2,200 units at $20 each
Sale 2, Sept. 22 ............ 1,900 units at $29 each
Required:
1. Calculate the cost of ending inventory and the cost of goods sold using the FIFO, LIFO, and average cost methods (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar).
2. Compare the ending inventory and cost of goods sold computed under all three methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?
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