The inventory accounting records for Lee Enterprises contained the following data: Beginning inventory ........ 400 units at

Question:

The inventory accounting records for Lee Enterprises contained the following data:

Beginning inventory ........ 400 units at $12 each

Purchase 1, Feb. 26 .........2,300 units at $14 each

Sale, March 9 ............2,500 units at $27 each

Purchase 2, June 14 .........2,200 units at $15 each

Sale, Sept. 22 ............2,100 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. (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?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...