Question

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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  • CreatedSeptember 10, 2014
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