Ace Auto Supply uses a perpetual inventory system. On March 10, the company sells two Shelby four-barrel carburetors. Immediately prior to this sale, the perpetual inventory records indicate three of these carburetors on hand, as follows:

With respect to the sale on March 10: (More than one of the following answers may be correct.)

a. If the average-cost method is used, the cost of goods sold is $460.

b. If these carburetors have identification numbers, Ace must use the specific identification method to deter- mine the cost of goods sold.

c. If the company uses LIFO, the cost of goods sold will be $15 higher than if it were using FIFO.

d. If the company uses LIFO, the carburetor remaining in inventory after the sales will be assumed to have cost $220.

Transcribed Image Text:

Date Quantity Purchased Unit Units Total Cost on Hand Cost Feb. 4 1 $220 1 $220 Mar. 2 2 235 3 690