The inventory, purchases, and sales of Product SOL for March and April are listed below. The company closes its books at the end of each month. It uses the periodic inventory system.

REQUIRED

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

2. Compute the cost of the ending inventory on March 31 and April 30 using the FIFO method. Also determine cost of goods sold for March and April.

3. Compute the cost of the ending inventory on March 31 and April 30 using the LIFO method. Also determine cost of goods sold for March and April.

4. Do the cash flows from operations for March and April differ depending on which inventory costing method is used—average-cost, FIFO, or LIFO? Explain.

Transcribed Image Text:

Apr. 4 Purchase 120 units $53 Purchase50 units S54 Mar. 1 Beginning inventory 60 units$49 10 Purchase 100 units $52 19 Sale 31 Ending 23 Sale 25 Purchase 100 units $55 30 Ending 200 units 90 units inventory 70 units inventory 140 units