1.

Compute cost of goods sold and ending inventory, using each of the following methods:

a.	Specific identification, with seven $165 units and four $175 units still on hand at the end
b.	Average cost
c.	FIFO
d.	LIFO

2.

Which method produces the highest cost of goods sold? Which method produces the lowest cost of goods sold? What causes the difference in cost of goods sold?

 

Transcribed Image Text:

Data Table Jul 1 Beginning inventory. 4 units @ $ 150 = $ 600 %3D 15 Purchase 5 units @ 151 = $ 755 26 Purchase 11 units @ 160 = $ 1,760 Data Table Jul 1 Beginning inventory. 4 units @ $ 150 = $ 600 %3D 15 Purchase 5 units @ 151 = $ 755 26 Purchase 11 units @ 160 = $ 1,760

Answer rating: 100% (QA)

Specific identification FIFO LIFO Weighted Average Cost of Goods Sold 1355 1675 1911 1869 Ending Inv... View the full answer