(APPENDIX 6B) INVENTORY COSTING METHODS: PERIODIC INVENTORY SYSTEM The inventory accounting records for Lee Enterprises contained the following data:

Beginning inventory 400 units at $12 each Purchase 1, Feb. 26 2,300 units at $14 each Sale, March 9 2,500 units at $27 each Purchase 2, June 14 2,200 units at $15 each Sale, Sept. 22 2,100 units at $29 each Required:

. Calculate the cost of ending inventory and the cost of goods sold using the FIFO, LIFO, and average cost methods. (Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.)

. Compare the ending inventory and cost of goods sold computed under all three methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?

Exercise