EXAMPLE $1$: COST FLOW EXERCISE

The following information is available from Sawyer$$s inventory records for Product X$.$

Units Unit Cost

January $1,2022($beginning inventory$)1,200$ $$4\mathrm{.}00$

Purchases:

January $5,20222,4004\mathrm{.}50$

January $25,20222,6005\mathrm{.}00$

February $16,20221,6005\mathrm{.}50$

March $26,20221,2006\mathrm{.}00$

Sales:

January $31,20223,000$

March $30,20222,600$

Instructions

Compute COGS and ending inventory at March $31,2022,$ under each of the following inventory methods. Remember that the cost flow assumptions refer to how costs flow into COGS.

$($a$)$ FIFO.

$($b$)$ LIFO.

$($c$)$ Average Cost $($moving weighted$-$average$).$