The inventory of Product A and data on purchases and sales for a two-month period follow. The company closes its books at the end of each month. It uses the periodic inventory system.

REQUIRED

1. Compute the cost of ending inventory of Product A on April 30 and May 31 using the average-cost method. In addition, determine cost of goods sold for April and May. Round unit costs to cents and totals to dollars.

2. Compute the cost of the ending inventory on April 30 and May 31 using the FIFO method. In addition, determine cost of goods sold for April and May.

3. Compute the cost of the ending inventory on April 30 and May 31 using the LIFO method. In addition, determine cost of goods sold for April and May.

4. Do the cash flows from operations for April and May differ depending on which inventory costing method is used? Explain.

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Apr. Beginning May 2 Purchase 100 units $216 inventory 50 units $204 10 Purchase 100 units $220 17 Sale 30 Ending 14 Purchase 50 units $224 22 Purchase 60 units $234 30 Sale 31 Ending 90 units 200 units inventory 60 units inventory 70 units