Question

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.


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  • CreatedSeptember 10, 2014
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