Jasper & Williams made purchases of a particular product in the current year as follows:

Required:
Ending inventory consists of 155 units. Assuming a periodic system, determine the costs to be assigned to cost of goods sold and Ending inventory under:
a. FIFO
b. Weighted average cost basis.
Which method provides the lower net income, and why?

Transcribed Image Text:

Jan. 1 Beginning inventory.120 units$2.10 Mar. 7 Purchased 250 units @ $2.20 July 28 Purchased. 500 Oct. 3 Purchased. $ 252 550 1,150 147 $2,099 = units $2.30 60 units$2.45-