Cost-flow assumptions – FIFO, LIFO and weighted average using a periodic system. The following data was available for Sellco for the fiscal year ended on January 31, 2011:

Sales................1,600 units

Beginning inventory............500 units @ $4

Purchases, in chronological order.......600 units @$5

800 units @ $6

400 units @ $8

(a) Calculate costs of goods sold and ending inventory under the following cost-flow assumptions (using a periodic inventory system):

(1) FIFO

(2) LIFO

(3) Weighted average. Round the unit cost answer to two decimal places and ending inventory to the nearest $10.

(b) Assume that net income using the weighted-average cost-flow assumption is $58,000. Calculate the net income under FIFO and LIFO.